Net Metering 2.0: Your Questions Answered
Under the rules adopted by the California Public Utilities Commission (CPUC), SCE is quickly drawing closer to its NEM 1.0 deadline date of July 1st, 2017 and with this deadline comes Net Metering 2.0 (NEM 2.0). SDGE & PG&E have already implemented NEM 2.0 in their territories.
NEM 2.0 is not the tragic devastating blow many thought. But, it does have some differences compared to NEM 1.0. Going solar still can make financial sense for many and is still a viable way for customers to achieve their energy independence.
Net Metering 2.0 Explained
NEM 2.0 still removes barriers for going solar in PG&E, SDG&E and SCE territories. We're seeing many customers in SDGE & PG&E going solar and saving money rather than staying with their utility.
Net Metering 2.0 (NEM 2.0) explained:
- Non-by passable charges (NBCs) – For every kWh imported from the grid (SCE), whether it can be netted out or not, there are NBC charges for that energy.
- New Interconnection Fee – While current NEM customers were exempt from paying a onetime connection fee, NEM 2.0 imposes a one-time charge of $75 for systems smaller than 1 megawatt.
- Mandatory Time Of Use (TOU) rates – Time of Use rate structures mean the price of electricity is based on the time of day and season as opposed to general consumption.
- As an existing customer seeking to expand your system, if you increase your system by 10% after July 1st, you will be automatically switched to NEM 2.0.
The intent of NEM 2.0 (in large part) is to reimburse the utility for your use of the grid. However, even with the new NEM 2.0 fees, now is an ideal time to install solar on your home, because the value of your solar system still outweighs the new fairly small additional costs.
Many customers looking at solar are ultimately looking to save money and gain independence from the utility. With NEM 2.0 drawing closer, there are many ways for you to achieve both goals. Working with a reputable company such as HelioPower, that uses proven engineering techniques to design your system and rigorous financial modeling to determine your savings, you can make a rational return-on-investment decision. In fact, many customers are combining solar with with an energy storage solution customers can do just that to enhance energy autonomy and savings.