(NEM 3.0) Net Metering policies in California

California has been a leader in implementing net metering policies to encourage the adoption of solar energy by homeowners and businesses. Net metering allows solar customers to receive credit for the excess electricity they generate and feed back into the grid. Here are some key net metering policies in California:

California’s Net Energy Metering (NEM) program: This program allows homeowners and businesses with solar panels to receive credit for the excess energy they generate and feed back into the grid. The credit is applied to their utility bill and can offset the cost of electricity they use from the grid. The NEM program is available to customers of investor-owned utilities (IOUs) like PG&E, SCE, and SDG&E, as well as some municipal utilities.

NEM 2.0: In 2016, California updated its net metering policy to NEM 2.0, which reduced the credit rate that solar customers receive for their excess energy. However, NEM 2.0 still allowed solar customers to receive credits for excess energy, and it also provided more time-of-use (TOU) options for customers to choose from.

NEM 3.0: In 2019, the California Public Utilities Commission (CPUC) approved a decision to move to NEM 3.0, which is expected to be implemented in the coming years. NEM 3.0 will make changes to the compensation structure for solar customers, but the details of the program are still being worked out.

Overall, net metering policies have been an important factor in driving the adoption of solar energy in California. These policies have helped make solar energy more accessible and affordable for homeowners and businesses, and have contributed to California’s status as a leader in renewable energy adoption.