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NEM 3.0: What You Need to Know About California’s New Solar Policy
Roof King Roofing & Solar

April 15, 2023

California's new Net Energy Metering (NEM) 3.0 policy has been implemented, and it will affect how much solar owners can save. NEM 3.0 is an updated version of the previous NEM 2.0 policy, and it is meant to encourage energy storage, which is why it provides a financial benefit for combining solar energy with batteries.

Financial Benefit of Solar+Storage System

Under NEM 3.0, homeowners who install solar energy systems will see their return on investment (ROI) for combined Solar+Storage systems improve. The ROI for Solar+Storage will be about the same as for standalone solar today. This is a great opportunity to add battery storage to your solar energy system, as it will allow you to save even more money on your electricity bill.

No New Fees or Charges for Solar Owners

NEM 3.0 does not include any new fees, charges, or "solar taxes" for solar owners, despite the utilities proposing new fees of around $60 per month. This is a significant win for both the solar industry and consumers.

Additional Funding for Energy Storage

The state's Self Generation Incentive Program (SGIP), which offers rebates for storage systems, is being given additional funding to the tune of $900 million. This underscores the state's commitment to energy storage.

NEM 3 FAQ's

  • Will I still be able to save money with solar under NEM 3.0?

    Yes, you can still save money with solar under NEM 3.0. While the payback period may be longer, solar remains one of the few investments virtually guaranteed to pay you back. 


    Additionally, pairing solar energy with batteries can allow you to use more of your solar electricity, store your excess solar energy, and have electricity in your home during utility power outages.


    Additionally, with load shifting, you can sell excess solar to the grid at the highest rate Time-of-Use (TOU) periods. To learn more about the benefits of Solar+Storage, contact Roof King Roofing and Solar for a free consultation and energy analysis.

  • How can I maximize the value of my solar energy system under NEM 3.0?

    To maximize the value of your solar energy system under NEM 3.0, you want to hang onto as much of your solar as possible and send it to the grid during the times of day when you'll be paid more for it. 


    Pairing solar energy with batteries can help you achieve this goal. Additionally, the design and sizing of your solar system are crucial under NEM 3.0. 


    The solar professionals at Roof King Roofing and Solar will conduct an in-depth analysis of your energy needs and usage to build a user profile and size your system for maximum value. Contact us today for a free consultation and energy analysis.

  • What incentives are available for solar and energy storage systems?

    The Federal Investment Tax Credit (ITC) offers a 30% tax credit for solar and energy storage systems. This credit has been extended through the end of 2032 and applies retroactively to systems installed in 2022. 


    To find out how you can take advantage of these incentives, contact Roof King Roofing and Solar for a free solar consultation and energy analysis.

  • How can I get started with solar and energy storage?

    To get started with solar and energy storage, contact Roof King Roofing and Solar for a free consultation and energy analysis. 


    Our solar consultants will work with you to design the right system for your needs and ensure that you can take advantage of all available incentives and benefits. 


    Whether you're interested in saving money on your electric bills, gaining energy independence, or having electricity during power outages, we can help. Call, email, or fill out a form today to schedule your free consultation.

  • How does the federal Incentive Tax Credit work, and how can I take advantage of it?

    The federal Incentive Tax Credit pays back 30% of the cost of your solar and/or battery system, in the form of a tax credit. Under the Inflation Reduction Act, the ITC has been extended and strengthened, so American taxpayers can continue to benefit from this generous incentive. 


    To take advantage of the ITC, you need to have your solar and/or battery system installed and operational by the end of 2032. 


    Contact us today for a free estimate and energy analysis, and to learn how the ITC can help you save on your energy bills.

  • What sets Roof King Roofing & Solar apart from other solar energy companies?

    As a long-time roofing company, Roof King Roofing & Solar understands the importance of a properly installed roof to protect your home or business. Our team of solar professionals includes experienced roofing experts who ensure that your solar system is installed correctly and safely without voiding your roof warranty. 


    We provide a comprehensive energy analysis to determine the best solar solution for your specific needs, including features like battery systems and load shifting. With a satisfaction guarantee and a 25-year warranty on all of our solar energy systems, we offer our customers peace of mind and a smart investment for the future. 


    Contact us today to learn how we can help you save on your energy bills with solar.

Federal Tax Credit

NEM 3 California solar

The federal Incentive Tax Credit (ITC) continues to pay you back 30% of the cost of solar and/or battery systems, in the form of a tax credit. The ITC was recently boosted back up to the 30% level, where it will remain for 10 years, through the end of 2032.


NEM 3.0 Changes in Perspective


Although NEM 3.0 has brought about changes, it's important to keep in mind two positive things: investing in solar energy continues to be one of the few investments that guarantee returns, and even with the changes, you will still save money on your electricity bills compared to relying solely on the utility company.

Getting the Most from Solar Under NEM 3.0

best way to take advantage of NEM

To maximize the value of your solar energy system in this new world of California solar, here are some tips:


#1.  Hang onto as much of your solar as possible. 

Maximize your savings by exporting your excess solar energy to the utility's grid during peak hours when you'll receive the highest rates. This way, you can reduce your reliance on the grid and keep more of your solar energy for personal use, saving you money on your electricity bill."


#2.  Consider Solar+Storage

Combining the two systems is, without a doubt, the best way to get the most from your solar under NEM 3.0. Storing your excess solar in batteries, and then drawing upon that power when you need it, lets you keep the full value of your solar electricity.


#3.  Consider Smaller Solar Systems

With NEM 3.0, we expect consumers will opt for smaller systems that cover less of their electricity needs, but that increase their ability to use all of that electricity themselves rather than sell it to the utility for less money.

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