NEM 3.0: How it Affects Homeowners

The CPUC has issued its NEM 3.0 decision for what it calls an “improved version of net billing” earlier this year. In short, these changes represent a retail export compensation rate that is slightly more aligned with the provided grid value of behind-the-meter energy generation. This new rate structure is a way to encourage adoption of solar systems that are paired with battery storage.

Although cloaked in complicated vernacular, for homeowners NEM 3.0 represents a further push for energy independence.

Payback periods may be higher under NEM 3.0 than they were under NEM 2.0. However, you’ll still save money by installing or running solar power, not to mention be better prepared for outages, blackouts, and grid failures. The best way to get the most out of your investment over your solar energy system’s lifespan is to add battery storage.

Residential Energy Storage at a Glance

Battery storage is a good way to take full advantage of power produced by a solar system. You can store this power and use it at a later date by installing a battery.

The fact remains that solar systems are efficient and effective, producing power at times when homeowners may not be utilizing it. For example, solar systems tend to overproduce during the middle of the day when compared to homeowner needs. Many homeowners work during the day. 

Without a battery, extra production is then back-fed to the grid. This program is referred to as Net Energy Metering (NEM).

With a battery paired with your solar system at home, you can use your extra power to charge your battery instead of sending it back to the grid. 

Benefits of Solar + Battery Storage

NEM 3.0 incentivizes eco-friendly decision making for economic and reliability reasons, especially when you add battery storage to your home solar energy system. Motivations for homeowners include:

  • Backup Power
  • Time of Use Savings
  • Self Consumption/ Energy Independence

Backup Energy

For many homeowners, the most notable advantage/benefit of having solar batteries is having reliable backup power during blackouts, emergencies, and grid outage. This includes Planned Safety Power Shutoffs (PSPS).

It’s important to note that without battery storage your solar system will shut down during any outages or blackouts. This is due to the fact that electrical code requires that solar systems are shut down during power outages. This is so solar energy doesn’t back feed live power to the grid in the event that the  utility company is working to fix power lines. 

With solar power paired with a battery system, a device called a backup gateway is installed, allowing your home to “island” – or isolate from the grid entirely. All of this happens instantaneously. Your gateway detects the event, disconnects your home from the power grid, and turns on your handy battery for seamless operation. 

This closed loop system enables the battery to power the home while the solar panels recharge the battery simultaneously.

Time of Use Savings

California IOUs (investor-owned utilities such as PG&E, SCE, and SDG&E) have adopted time of use (TOU) rate plans and have applied them for residential customers. TOU rate plans feature changes when it comes to wholesale power prices for energy utilized throughout different times of day.

Plans such as these tend to have peak charges when people are home – during the late afternoon and/or the early evening. Demand has a way of spiking after the traditional work day. During the middle of the day classifies as off-peak times. The same goes true for overnight hours, which is when demand is typically substantially lower.

Homeowners can seize this opportunity to store their power onsite instead of back feeding excess solar power at hours when it’s considered to be less valuable. This will end up reducing use of power during higher costing times of the day. 

Self Consumption & Energy Independence

When pairing your home solar system with a batter, you can use this clean energy far more often instead of sending a high percentage of solar power to the grid without a battery. Homeowners can also avoid drawing “dirty” grid power during the night. Having a battery gives you the power to use clean energy throughout the day and night. This will ultimately reduce dependency on the grid.

NEM 3.0 Conclusions

According to an extensive study published in 2021, California solar energy could save ratepayers over $120 billion over the next 30 years. You can take advantage of savings solar promises while boosting your savings by pairing your solar panels with a battery.

If you’re wondering if solar is still worth it when it comes to bill savings under NEM 3.0, the answer is a resounding yes. Although savings won’t be the same as those who have grandfathered into NEM 2.0, home solar systems are still far more affordable when compared to using and paying for utility electricity in California. Pairing your home solar system with a battery will save you money and leave you better prepared for emergencies and outages. 

As you make adjustments for NEM 3.0, Geneverse can help you get the most out of your solar energy system. We’re here to provide valuable information and we’re working on exciting new developments that will help power entire households for the long haul. 

Follow Geneverse on social media and join The Geneverse Club to stay up-to-date on the newest developments regarding NEM 3.0. We also provide exclusive deals, promotions, and tips regarding our reliable, renewal, and affordable solar power systems.

About Geneverse: Geneverse is the most reliable source of emergency backup power for your home and community. From the HomePower ONE power station providing portable access to electricity, to the SolarPower ONE as a source for recharging, never be disconnected from what matters most to you. Choose the size of Solar Generator perfect for you and your family. Learn more about how Geneverse and its industry-leading 5-year limited warranty can bring protection and security to your family on our website. Never face a power outage alone with a backup battery generator and solar panel from Geneverse.

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