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NEM 3.0, or Net Energy Metering 3.0, is the third iteration of Californias net metering policies, implemented in April 2023. Solar customers who apply for interconnection after this date are subject to NEM 3.0, which reduces the compensation for surplus electricity sent back to the grid.
On April 15, 2023, NEM 2.0 closed to new customers and a new Solar Billing Plan went into effect. NEM accounts will continue to bill under the current NEM program until the 20-year period expires, or until the account loses eligibility to remain on the NEM program, whichever is earlier.
How does Net Energy Metering billing work? Net Energy Metering (NEM) tracks your net energy use once youre interconnected with the SCE grid. Your bill calculates the difference between surplus energy from your system and the energy you consume to determine whether you owe a balance or have credit each month.
Grandfathering for the current NEM tariff (NEM 2.0) is extended to customers for 20 years. In the event of a new NEM tariff, NEM 2.0 customers are grandfathered to their tariff for 20 years from their PTO date. The 20-year NEM tariff grandfathering does not include grandfathering for your Time-of-Use rate.
On December 15, 2022, the California Public Utilities Commission (CPUC) approved NEM 3.0, a new policy that will replace NEM 2.0 beginning on April 13, 2023. Net energy metering describes a billing system between utility providers and customers that generate their own power through solar or wind.
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Utility companies must grandfather their customers into NEM 1.0, 2.0, or their current net metering rate for 20 years. Now that NEM 3.0 has passed, it cannot go back and retroactively affect these grandfathered customers.

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