Save your solar from NEM 3.0
Planning a commercial solar PV project in California? The CPUC’s new rules will impact its value–but there’s a brief window to act.
Net Energy Metering (NEM) 3.0 is almost here–and if you’re planning a commercial solar PV project in California, you need to act now to preserve your project’s value.
NEM has traditionally offered the state’s solar PV customers retail energy cost credits when they export excess energy to the grid. With the new rules, all that changes. In December 2022, the California Public Utilities Commission (CPUC) released a final decision that ends the existing version of NEM, known as 2.0, for all projects approved on or after April 14, 2023.
NEM 3.0 export credits will be lower than the cost of retail electricity, and that can have impact on the financial payoff for commercial solar.
To qualify to grandfather NEM 2.0 and its export credits for 20 years, solar applications must be submitted to California utilities and “deemed complete” before April 14. This process can be complicated and time-consuming, requiring high-level PV system engineering, site plans, and electrical diagrams. Applications must be reviewed by utility engineers, clarified, and pass inspection. In our experience, the utilities’ online application portals can get bogged down as the deadline approaches.
NV5 has created and is managing hundreds of NEM 2.0 applications for our clients across California. We’re advising our clients and partners to submit their applications no later than early March.
Need help making sure your project gets in under the wire? Email or call us today.
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