Utilities are tired of losing money to solar adopters and have lobbied to change the net metering rules.
Net metering is a billing mechanism that credits solar energy system owners for excess electricity they add to the grid.
In January 2022 California’s CPUC is scheduled to decrease net metering rates that weakens the value and return on investment of solar.
However, if residents install solar by August 2022, they will be grandfathered into NEM 2.0 which secures a higher retail rate per unit of production, and can roll over credits for up to a year.
Under NEM 3.0, homeowners can expect to be credited at a MUCH lower rate and see their credit balance reset at the end of each month, nearly doubling the time it takes to recoup the solar investment compared to NEM 2.0 rules.
If you have been putting off researching solar, now is the time before the utility lobbied NEM 3.0 legislation goes through.