NEM 3.0 Goes Live in California: What It Means for EPCs and Homeowners?

Chase OliverApril 13, 2023 594 2

NEM 3.0 key takeaways:

  • Current solar owners will remain under their existing net metering policy

  • Solar owners under NEM 3.0 will earn around 75% less for the excess electricity they push onto the grid

  • Under NEM 3.0, the payback period for solar and battery storage systems will be roughly equal to the payback period for solar-only systems

  • Californians can be grandfathered into NEM 2.0 by submitting an Interconnection Application for their solar system by April 13, 2023


NEM 3.0 is a new version of the net energy metering policy approved by the CPUC on December 15, 2022. It applies to utility customers in the territories of California’s three major investor-owned utilities:

Pacific Gas & Electric (PG&E)

Southern California Edison (SCE)

San Diego Gas & Electric (SDG&E)

It’s important to note that NEM 3.0 is not retroactive, so solar systems installed under NEM 1 or NEM 2 will remain under their current policy.


5 things to know about NEM 3.0

  1. It features a major reduction in the net metering value of solar electricity.

  2. There are no new charges or fees, commonly known as “solar taxes.”

  3. Pairing solar with battery storage will be more beneficial under NEM 3.0

  4. Solar customers that submit an interconnection application before April 13, 2023, can be grandfathered into NEM 2.0 for 20 years

  5. Solar owners that are grandfathered into NEM 2.0 will be able to add battery storage later and remain on NEM 2.0

Is NEM 3.0 retroactive?

No, NEM 3.0 is not retroactive. This new net metering policy will only apply to homeowners that submit their solar interconnection applications after April 13, 2023. Homeowners that submit a complete interconnection application prior to NEM 3.0 taking effect will be grandfathered into NEM 2.0 for 20 years.

Has NEM 3.0 been approved?

Yes, on December 15, 2022, the California Public Utilities Commission (CPUC) voted unanimously to approve NEM 3.0. The new policy will take effect on April 13, 2023 following a 120-day sunset period for NEM 2.0. Utility customers can still be grandfathered into NEM 2.0 during this period by submitting a complete interconnection application.

What does NEM 3.0 mean for solar?

NEM 3.0 reduces the export rate for residential solar electricity by around 75%, from an average of 30 cents per kWh to 8 cents per kWh. Lower export prices will increase the payback period for solar owners under NEM 3.0 and decrease the overall savings.

This effectively increases the value of pairing battery storage with solar. Under the new rate structure, the return on investment for solar and battery is similar to that of solar only, but with the added benefits and independence of having a backup power source.


Solar system price checker

Comments (2)

  • Lynne Wilson • August 27, 2023 24 23

    I never thought I was gonna see this marriage thing coming to existence between me and my lover, but thanks to Dr Edetanlen, who with the power of his great spell made this possible. If you find yourself into same or related problem, You can also call or Whatsapp him via +2349153512788 or email please beware of scams and if anyone else use this same testimony please no the person is a scam only Dr Edetanlen can help you Good luck.

  • Allen Dave • July 16, 2023 25 23

    Investment is one of the best ways to achieve financial freedom.For a beginner there are so many challenges you face.Trading on the Crypto market has been a life changer for me.I almost gave up on cryptocurrency at some point, until I got a proficient trader Bernie Doran,he gave me all the information required to succeed in trading I invested $2000. and got back $25,500. within 3 days of investment.His strategies and signals are the best reach out to him on Gmail : BERNIEDORANSIGNALS@GMAIL.COM

Design Your Solar Home


12 3

Input your address to see if it is solar friendly and how much you can save with solar.

Great. Your address is perfect for solar. Solar incentive is still available. Select monthly utility cost and calculate the size of solar system you will need now.

Whoa ! Going solar is definitely a smart decision.

kw System size years Payback period Lifetime savings

No money down, 100% finance is available.

Become a Solar Pro today!

Do not show this information again.