The Expiration of NEM 2.0 to NEM 3.0 for Solar Photovoltaic Systems: Why Consumers Should Be Cautious in Rushing to Get a System in by the Deadline
The Net Energy Metering (NEM) program in California is undergoing a major change, as the NEM 2.0 program will expire on April 14, 2023, and be replaced by the NEM 3.0 program. This change is expected to have a significant impact on consumers who are considering installing a solar photovoltaic (PV) system, and many are rushing to get their systems installed before the deadline.
While the NEM program provides many benefits to consumers, such as lower energy bills and reduced carbon emissions, the transition from NEM 2.0 to NEM 3.0 may not be as straightforward as many people think. Consumers should be cautious in rushing to get a system installed before the deadline, as they may not fully understand the changes that are coming and how they will affect their investment.
One of the main changes that consumers need to be aware of is the way that excess energy will be credited on their bills. Under NEM 2.0, excess energy was credited at the retail rate, which was relatively high. However, under NEM 3.0, excess energy will be credited at a much lower rate, which could reduce the financial benefits of having a PV system.
Additionally, the rules surrounding interconnection and net metering are changing, which could make it more difficult for some consumers to participate in the program. For example, under NEM 3.0, there will be restrictions on the size of the system that can be installed, and the process for interconnecting a system to the grid may become more complex.
In conclusion, the expiration of NEM 2.0 and the transition to NEM 3.0 will have a significant impact on consumers who are considering installing a solar PV system. While the program provides many benefits, consumers should be cautious in rushing to get a system installed before the deadline, as they may not fully understand the changes that are coming and how they will affect their investment. It is always a good idea to speak with a trusted professional and carefully consider all of the factors involved before making a decision.