What San Diego Homeowners Should Know About NEM 3.0


On December 15th, 2022, the California Public Utilities Commission (CPUC) made a significant decision that will impact homeowners across the state. The CPUC voted to approve the third version of net metering tariffs, NEM 3.0. This new set of policies will bring forth many changes, but the most significant is the reduction in net metering compensation rates for solar panel owners. Unfortunately, this means that homeowners who have invested in solar panels will receive lower savings and will have to wait longer to see a return on their investment.

While the reduction in compensation rates may seem like a setback for homeowners, it is essential to remember that solar energy is still a viable and sustainable option. With the right equipment and installation, homeowners can save money on their energy bills and reduce their carbon footprint. It is also worth noting that the CPUC has implemented other policies to encourage the adoption of solar energy, such as incentives for low-income households and the expansion of community solar programs.

More importantly, homeowners who already have solar power grids, and those in the process of acquiring one, have until April 14th, 2023, to submit an interconnection application to lock in NEM 2.0 rates for the next 20 years, securing the existing rates and their current savings. 

What do I need to do to be Grandfathered into NEM 2.0?

To take advantage of this benefit, you must have the following: 

  • A signed solar purchase contract
  • An interconnection application
  • A single-line diagram
  • An oversizing explanation, if needed.

If you have any doubts, contact your solar panel company. 

What if I Haven’t Installed My Solar Panels Yet?

The good news is that you don’t need solar panels installed in your house to be grandfathered into NEM 2.0. Instead, your solar company must submit those forms to the utility, free of deficiencies, before April 14th, 2023. 

Once your solar company submits those forms, the policies afford you up to 3 years to install the solar panels while still securing the NEM 2.0 rates; However, your solar company isn’t obligated to wait that long, so you must negotiate with them to see how long they’re willing to wait before installing your solar panels.

Remember that, once grandfathered into NEM 2.0, you won’t be able to increase the number of solar panels on your home, so talk with your solar company beforehand to secure the best deal for your house. 

Who should I Hire to Install My Residential Solar Panels? 

As a leading contractor in the state, we are proud to hold C-10 electrical, C-39 roofing, and B-General licenses. This means that EZ Solar is equipped to handle all aspects of your installation project, regardless of size or complexity. We understand that investing in solar can be a big decision, so we offer a free, no-pressure, in-home consultation. During this visit, we take the time to educate our clients on the installation process and answer any questions they may have. We believe in transparency and want our clients to feel confident in their decision to go solar, particularly with the confusion the announcement of NEM 3.0 has caused. 

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