How NEM 3.0 is changing the entire commercial solar industry.
Net metering has long been a popular way for homeowners and businesses to save on their electricity bills by taking advantage of excess solar energy. However, starting on April 15th, 2023, California’s net metering policy will be undergoing significant changes with the implementation of NEM 3.0.
For businesses in California, the biggest change will be the shift from “net metering” to “net billing” for solar savings. Under NEM 3.0, the Avoided Cost Calculator (ACC) will be used to determine solar savings based on various time-of-use rates. Unfortunately, these rates are expected to result in savings that are 50%-75% lower than under NEM 2.0. However, businesses that invest in solar batteries will have an advantage as the highest time-of-use rates will be available at night, allowing for the storage and release of excess solar energy gathered during peak sunlight hours.
Another important consideration for businesses under NEM 3.0 is the ability to install up to 150% solar power – 50% more than their current electricity consumption. This is to allow for the added energy consumption of future purchases such as electric vehicles (EVs) or other energy-intensive purchases made by your business. However, if businesses plan to expand their solar energy generation capacity, it is best to do so before NEM 3.0 goes into effect as expanding after the new net billing policy is implemented will subject the business to the new rates. If you’d like to find out more about your solar installation options, contact Infinity Energy Construction.
In addition to the changes to solar savings and installation capacity, NEM 3.0 will also introduce a monthly grid access fee of $8 per kW.
It is important for businesses to act quickly if they are interested in taking advantage of the more favorable rates offered under NEM 2.0. Any business or home builder that buys solar and fills out an interconnection application before April 13th, 2023 will be grandfathered into NEM 2.0 and will be able to continue to enjoy its benefits even after NEM 3.0 goes into effect. If grandfathered into NEM 2.0, businesses can take advantage of net metering for a further 20 years.
For businesses looking to invest in solar energy, it is important to carefully consider these changes and their potential impact on your bottom line. Now is the time to act. Infinity Energy Construction is a solar installation company that specializes in working with home builders and businesses to install solar systems. Contact us today to learn more about how we can help your business transition to solar energy and take advantage of the benefits of NEM 2.0 before it is too late.