Change is on the horizon for California Grid-Tie Solar customers. The California Public Utilities Commission (CPUC) has approved new Net Metering rules for grid-tie solar energy systems – NEM 3.0. Effective on April 13, 2023, the new Net Metering rules will stretch out the payback period for grid-tie solar power systems in the Golden State by reducing how much customers are paid for their solar generated power.
To help customers leverage the power of their solar power systems, NAZ Solar Electric carries several solutions that provide battery storage for grid-tie solar systems. With these new Net Metering rules, this is even more important for California residents.
What is Net Metering?
Net Metering is the way customers with grid-tie solar systems are credited for the energy that their solar panel systems produce. Under the previous NEM 2.0 rules most California customers received full retail rates for each kilowatt hour (KWH) they sold back to the utility company. As a grid-tie solar system produces energy throughout the year, each KWH that is generated contributes to the ROI (return on investment) or payback on the initial solar system investment.
What’s in NEM 3.0?
The new NEM 3.0 rules will reduce the rate that grid-tie customers in California receive for selling solar generated power back to the utility company by as much as 75%. Additional Grid Participation Fees will also add to grid-tie customers’ monthly bills by as much as $8 per kilowatt of installed solar. Time Of Use (TOU) rate plans will be instituted – these charge more for electricity based on the time of day the power is used. These rules apply to customers of the three major electric utility companies that supply most all electric customers in the Golden State: Pacific Gas & Electric (PG&E), Southern California Edison (SCE), San Diego Gas & Electric (SDG&E). Current grid-tie customers can “grandfather” their current systems and maintain the buyback rates under NEM 1.0 and NEM 2.0 and new grid-tie systems that are permitted by April 13, 2023, are also able to receive the higher payback rate under NEM2.0 for a fixed period of 20 years. Other changes remove special rates for low-income solar customers and for commercial solar customers on top of the reduced payback for electricity produced.
Why the New Rules?
There are many motivations behind the changes to Net Metering in California. One reason is to encourage the installation of battery storage for solar grid-tie systems. As solar grid-tie systems become more widely spread, the power companies have a harder time managing all that available solar power. This is because during daylight hours there is a peak in solar energy production when system loads might not be at peak. When the sun goes down, solar production disappears, and the utility providers must generate power from traditional sources like natural gas power plants to cover peak loads after dark. If the solar energy from grid-tie systems can be stored when the sun is shining and then use that energy any time during the day or night the utility grid becomes more stable and resilient – making the grid easier to manage.
Why is the LG Home 8 a good solution?
The new LG Electronics Home 8 is an energy storage solution that can be installed with any new or existing grid-tie solar system to provide whole-house battery backup, essential loads backup, time of use load management and self-consumption modes of operation. The LG Home 8 system consists of a battery unit and the Smart Energy Box (SEB) and is expandable to 4 battery units per SEB for a total of 57.6 kwh of usable battery storage and 32 kw of AC output power. Outside of the LG Home 8, NAZ Solar Electric has several multi-mode energy storage solutions to minimize grid use and maximize system return on investment.
If you would like more information regarding Grid-Tie and Energy Storage Solutions, or if you have more questions about the new LG Electronics Home 8, you can contact us at sales@solar-electric.com or call 1.800.383.0195
