What Is the Future of Solar in California?

sun rising over solar panels

Installing a solar energy system at your California home is a great step towards electrifying your home and achieving zero net energy. And, with significant rebates and incentives available to homeowners, it’s a great time to consider solar-related home performance upgrades. 

That said, the recent passage of NEM 3.0, California’s updated net energy metering (NEM) system, has significant implications for those considering installing solar panels and for homeowners who have already installed solar energy systems.  

Read on to learn the latest updates on NEM 3.0 in California, how they will impact the future of solar, and how homeowners can prepare for the changes NEM 3.0 will bring. And when you’re ready to install solar panels or invest in battery storage, turn to the Clean Energy Connection’s contractor directory to find a reputable clean energy contractor. 

California NEM 3.0 Update 

In December 2022, the California Public Utilities Commission (CPUC) unanimously voted to approve NEM 3.0. This updated net metering policy will ultimately reduce the amount that new California solar customers will receive when they send excess solar electricity back to the grid. Here are a few things Californians should know about NEM 3.0: 

  • Compensation rates for excess electricity pushed back into the grid will be about 75% less under NEM 3.0 than they were under NEM 2.0
  • Customers who have already gone solar or who sign a completed interconnection agreement by April 14, 2023, will be grandfathered into NEM 2.0 (or their existing net metering policy) and will remain under that policy for 20 years from when they received permission to operate
  • Under NEM 3.0, the solar payback period increases 

One key takeaway from these updates? If you’ve been on the fence about installing solar panels, doing so by April 14, 2023, can mean significant savings for the next 20 years, since you’ll be grandfathered into the existing NEM 2.0 plan. Another more lasting result of this updated NEM program: solar battery storage has become even more important. 

The Growing Importance of Solar Battery Storage

Under the updated NEM 3.0 program, solar battery storage becomes increasingly important. Here’s why: By adding solar batteries to your system, you can store any excess energy you produce rather than sell it back to your utility company. Here are some of the key benefits of battery storage under NEM 3.0: 

  • Avoid selling energy back at the new lower rates (remember, under NEM 3.0, new solar customers will be receiving about 75% less compensation for energy sent back to the grid)
  • Draw electricity from battery storage during “peak” hours, or times when it’s more expensive to pull from the grid 
  • Keep the lights on during de-energization events (Public Safety Power Shutoffs) 

Use the Clean Energy Connection’s Contractor Directory to Find a Solar Contractor You Can Trust 

Because of the updated NEM 3.0 program, battery storage has become even more important for California homeowners with solar energy systems. Solar batteries allow you to save excess energy generated by your solar panels, so you can use that energy when you need it most. 

Ready to invest in solar battery storage or home solar panels? The Clean Energy Connection simplifies the process of finding a reputable solar contractor in your local area. Through our contractor directory, homeowners can search for potential contractors and sort them by name, location, services, and more. And, every contractor in our directory has gone through a thorough vetting process, including reference checks, license verification, and ongoing customer satisfaction surveys. 

Find an expert solar contractor for your California home today.