What Does Net Metering 3.0 Mean and How Can You Participate?

A robust net metering regulation is a unifying factor across the top solar markets in the United States. When your solar power system creates more energy than you need, you may send the extra back to the grid and get credit for doing so, thanks to net metering. A proposed ruling by the California Public Utilities Commission was issued on December 13 that would lower net-energy metering payments to solar consumers. NEM 3.0 California customers would also be required to pay monthly connection fees under the proposed plan.

Advocates for sustainable energy and justice throughout all of California are responsible for this decision. For the sake of energy security, affordability, and justice, this issue brought together climate activists, solar industry workers, solar consumers from the working class, and many more. In light of recent wildfires, power outages for public safety reasons, and escalating prices from investor-owned utilities, residents throughout the state are calling for more access to clean, locally-sourced energy. We strongly encourage the CPUC to rethink the solar pricing structure and instead prioritize the interests of Californians who are thinking, when will NEM 3.0 go into effect. According to the numbers, these are the people that depend on the home solar program in the state the most," said Cook.

Net Metering 3.0 credits have been reduced

The first is a credit equivalent to the retail value of power for electricity generated from solar sources and exported to the grid in various jurisdictions. One-to-one net metering refers to the practice of giving credit for solar exports at the same rate as what you would pay to utilize power from the grid. The three largest California utility companies have petitioned the CPUC to establish a new credit rate, which would replace the current system of net metering with net billing, which has a substantially lower value. Their proposed change to CPUC policy is for export credits to be calculated using "avoided cost" rates, which are normally about 25% of existing prices but may vary depending on the time of year and the day of the week when energy is exported. This might result in a 75% reduction in the value of net metering credits.

Benefits to the grid charge and customer charge

It's hard to put a finger on exactly what happened to cause the Net Metering 3.0 vote to be postponed, but it's clear that various groups were working together toward a same objective. Initiatives that united the voices of solar advocates throughout the state and beyond tended to have a good influence, from corporations like Tesla to climate NGOs.

Saving the break for later

We have temporarily put NEM 3.0 on hold. Alice Busching Reynolds, the incoming president of the CPUC, has asked for more time so that she may "examine the record and consider adjustments" to the planned initiative in light of party views. An email from one of the commission's administrative judges also said that Reynolds wants to make sure all five commissioners can take part in a session discussing the benefits and drawbacks of NEM 3.0.

Utilities have asked the CPUC to establish two new fees, a grid benefits charge and a customer charge, for solar customers every month in addition to lowering the value of solar credits. Both are designed to compensate the utility of which you as a solar property owner will continue to use despite not being required to do so by one-to-one net metering.