Net Energy Metering, NEM 3.0

A big change in solar policy is happening on April 13, 2023!

There is important news about NEM and the future of solar power in California. NEM is a state mandated law on how PG&E handles the credits for the extra power generated during the day.  Up until now, PG&E has been required to credit their solar customers for that unused electricity at the same rate that they then sell it back to you at night and rainy days. This, however, changed due to a vote by the California Public Utilities Commission (CPUC) on December 15, 2022. The CPUC unanimously voted to approve NEM 3.0.

In the new arrangement (called NEM 3.0) that will begin this coming April, 2023, they will only credit about 25% of the standard rate for power exports, but then full price to import it back. Current customers and those who sign up before April 13 will be “grandfathered” into the current system. After that, the new, far less advantageous system will begin. Solar will still make sense for those with large electric bills, but the savings will be much greater for those who sign up in time to take advantage of the old system.

We also have a couple of new solar loans available, so be assured that, if you so wish, you will not have to pay anything out of pocket and still have a payment that is far less than your current PG&E bill.

If you are interested in once again looking into your solar options, please submit your contact information below so you can get your FREE Solar Power Bid to see if it makes sense for you to take advantage of the existing solar arrangement.


If you have questions, please contact us today! 877.607.6527


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More information…

What is Net Energy Metering (NEM)?

NEM is when your solar energy system produces excess energy and the energy is sent back to PG&E who buys the energy back from you. Customers use that extra energy to offset their total electric bill; this is how people with solar power save money. This excess energy is also used during overly cloudy days or during the night, when electricity usage is greater than its production.

What is going to change: 

  • Export rates will decline significantly in the range of 3 to 6 cents per KwH. See chart below
  • Under NEM 3.0, there are no new “solar taxes” such as charges or fees.
  • Pairing solar with battery storage will be more beneficial under NEM 3.0

If you Switch to Solar before April 13, 2023, you will be grandfathered in to NEM 2.0 for 20 years.

NEM 3.0 will lower solar export rates

The most outstanding change from NEM 2.0 to NEM 3.0 is the rate at which solar owners will be compensated for the excess electricity they sell back to the grid.

Under current net metering policies, California solar power owners are credited for the full retail value of each kWh of electricity they put on the grid. In this one-to-one exchange, every kWh you put onto the grid (export) offsets a kWh that you pull off (import).

Under NEM 3.0, the value of solar exports will no longer be based on retail rates. Export prices will be based on the “Avoided Cost Calculator” and would vary by the hour based on Time of Use rates.

Below is a chart to summarize how people will be paid for their excess solar production in the new policy. The gray bars indicate what homeowners pay per kWh for grid electricity and the black bars indicate what solar owners will be credited per kWh for excess solar production.

NEM chart
Image Source