New Solar TariffsAre you familiar with California’s latest solar energy regulations? Pomona Choice Energy encourages solar customers and customers interested in solar to stay up to date with the recent changes.

On December 15, 2022, the California Public Utilities Commission (CPUC) approved NEM 3.0, an updated policy that aims to modernize the NEM solar tariff. Since its introduction in 1997, the Net Metering (NEM) program has facilitated the installation of over 12,000 megawatts of renewable generation by 1.5 million customers.

NEM 3.0 has been designed to promote solar and battery storage while supporting grid reliability and controlling electricity costs for all Californians. The new tariff has no impact on existing rooftop solar customers, who will maintain their current compensation rates.

“We are launching the solar and storage industry into the future so that it can support the modern grid,” said CPUC President Alice Reynolds in a press release. “The new tariff promotes solar systems and battery storage with a focus on equity and advances the new clean energy technologies we need to meet our climate goals and help ensure grid reliability.”

Under this revised model, customers are encouraged to install battery systems, enabling them to store excess solar electricity generated during the day and export it back to the grid during the evening peak demand period. NEM 3.0 rewards customers based on the value of the excess electricity supplied to the grid, determined by the avoided cost of utility purchasing electricity from alternative sources.

To complement the federal incentives provided by the Inflation Reduction Act, the California State Legislature has allocated an additional $630 million for residential low-income solar plus battery storage adopters.

Customers who choose to install solar systems can expect significant savings on their electricity bills. On average, new residential customers installing solar are projected to save around $100 each month. Moreover, those who opt for solar technology along with battery storage can save at least $136 per month on average. By taking advantage of these savings, customers can fully recover the cost of their solar systems in just nine years or less.

The new policy, NEM 3.0, also provides additional energy bill credits to residential customers who adopt solar or solar and battery storage systems within the next five years. These bill credits are guaranteed for nine years, ensuring predictable savings. The revised tariff promotes equity by offering low-income customers more than double the amount of extra bill credits, thereby improving their access to solar and storage solutions.

“NEM 3.0 addresses our immediate grid needs as a timely reform,” said Tim Sandoval, Pomona’s Mayor. “It reduces dependence on fossil fuels, all while enhancing grid resilience.”

For further information on NEM 3.0, please refer to the provided FAQs or visit the CPUC’s website. Pomona Choice Energy is dedicated to keeping you up to date with the latest solar energy regulations in California. Visit our website to learn more about our NEM program, Pomona Choice Solar.