California’s New Net Energy Metering

California’s Net Energy Metering 2.0 policy allows home and business owners to credit the excess energy their solar system generates at a retail rate. They can then use that “banked” energy at a later time when the rates are lower. This is especially beneficial in instances where rainy or cloudy weather can reduce your solar system’s production.

The NEM 2.0 policy mostly maintains the same structure as NEM 1.0, but there are some minor changes. Those changes are:

  • PG&E will charge a one-time interconnection fee of $150 to connect your solar system to the grid.
  • Although you’ll receive full retail credit for energy put on to the grid, you now have to pay non-bypassable charges (NBC’s) for all energy consumed.
  • It is mandatory for every home and business owner that installs solar to switch to Time-of-Use rate plan. This is designed to work with net metering to keep your energy bill low.

NEM 2.0 will be reconsidered in 2019, but those who interconnect before then will be grandfathered to the terms NEM 2.0 for 20 years. Net Metering has played a huge role in making California a leader when it comes to solar. With NEM 2.0 now in place, solar homeowners can continue to benefit from Net Metering for years to come.