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Understanding the Benefits of Solar Under the New California Regulations
On April 15, 2023, California’s Net Energy Metering (NEM) policy, now known as The Solar Billing Plan or The Net Billing Tariff went into effect. Solar customers are credited for the excess energy they generate and send back to the grid. As California transitions to “The Net Billing Tariff” (NBT), there will be questions about how it affects the process of getting solar, people’s energy bills, and the benefits for current and prospective solar system owners.
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To answer those questions, your friendly solar experts at A.M. Sun Solar created a breakdown of getting solar and how solar reduces energy bills.
How does billing/solar credits work?
NEM, The Net Billing Tariff, is a billing arrangement that credits solar customers for the excess energy they generate and send back to the grid.
Under The Net Billing Tariff (Formerly NEM 3.0), solar customers will receive credits for excess energy. Instead of receiving retail-rate credits, solar customers will receive a credit of less than retail established by their utility company.
So, what does this mean for solar customers in California? It means that solar is a great way to save money on energy bills.
How Will The Net Billing Tariff, (Formerly NEM 3.0) Impact Current Solar System Owners?
Existing solar systems that are already enrolled in NEM 1.0 or NEM 2.0 are typically grandfathered into the new program, meaning that they can continue to receive credits for excess electricity generated by their solar system based on the terms and conditions of their existing program.
What are my options for adding solar?
Solar will offset a significant portion of your energy costs under “The Net Billing Tariff”. Solar system owners can expect to see reduced energy bills as they continue to generate their own electricity from solar panels and offset their consumption from the grid with credits earned from excess generation.
Solar Only: This option offsets power usage during the day and feeds extra to the grid for credit.
