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Californias net metering program, NEM 2.0, is being replaced with NEM 3.0 in early 2022.
In August 2020, for the second time in just four years, the California Public Utilities Commission (CPUC) opened up a new proceeding to change Californias net energy metering (NEM) program. Although no new rules or regulations have been rolled out, a final decision on California NEM 3.0 is expected in 2022.
There is still opportunity for the proposed NEM 3.0 decision to change after the final decision. ROTH Capital Partners managing director and senior research analyst Philip Shen said his firm expects the final decision to be made on December 15, 2022.
Under this program, any excess energy generated will be exported to the utility grid and will be paid on a one-on-one offset basis. The priority is for self-consumption, however some premises which are not operating during the weekends or public holiday may have excess energy exported to the grid.
The revised rules would: Remove a proposed $8 per kilowatt monthly fixed charge, a so-called solar tax, on new residential systems. Reduce utilities payments to homeowners for excess power they sell by as much as 75% compared to current rates.
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The California Public Utilities Commission (CPUC) has released its proposed decision for Net Energy Metering (NEM), implementing a net billing mechanism and slashing payments for excess solar production sent to the grid by 75%.
Timeline. After PGE receives the required paperwork from your contractor, permission to operate your system typically takes 5 to 10 business days, up to a maximum of 30 business days. TIP: Include your email address on the Interconnection Application to receive approval faster by email.
Interconnection is the process by which a solar customer applies for and receives permission from their local utility company to connect to the utility grid. If youre working with a professional solar company like Palmetto, they will likely take care of the interconnection process on your behalf.
If a solar system is placed in service in 2022, you will qualify for a 26% tax credit instead of 22%. You must purchase the system to claim the ITC. Consumers may not claim the tax credit for leases or Power Purchase Agreements (PPA).
To receive approval to interconnect, the utility company must authorize this connection. In addition, the solar panels and equipment need to meet specific qualifications to ensure the proper voltage, power quality and reliability.

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