NEM 2.0 vs NEM 3.0
Commercial Solar in California is the best investment a business can make….but not for long.
On February 28, 2023, the deadline for solar applications under the existing terms will come and go. At this point, we will bid a fond farewell to NEM 2.0 and brace for the era of NEM 3.0.
In other words, the payback period on a commercial solar investment will go from two years to nine years.
For many businesses, monthly savings will be reduced by about 50%. It’s a big setback for California businesses and clean energy in the state. But there is still time to act! Contact us below to see how much you can save and what you need to do to “grandfather in” the existing solar economics.
Why is solar right for you, right now?
Electric bills increased by 30% since 2019 in Los Angeles and the incidence of power outages increased by 38% in the same period.
Increasing utility costs and grid instability are nothing new, but the cost of doing nothing is getting greater by the year, yet with NEM 3.0 about to be phased in, the economics of commercial solar in California will take a significant hit. Current electric cost savings can be as high as 80%, but NEM 3.0 will reduce those savings on average by about half.
What's changing? NEM 2.0 is giving way to NEM 3.0.
On November 10, the California Public Utilities Commission issued a proposed decision authorizing SCE, SDGE and PGE to change the structure of new solar energy agreements.
If you have already received a solar proposal from Sunistics, "NEM 2.0" will have formed the economic basis, but under "NEM 3.0," the payback period changes from two years to nine years.
There are lots of calculations in the new rate that impact the value of a solar project. The biggest is the amount SCE, SDGE and PGE pay for energy produced by the solar customer (exported) and what the customer pays for energy (imported). Right now, that amount is one to one. Under the new tariff, that balance changes to substantially favor the utility.
OUR PROJECTS
Customer Success Stories
OUR PROCESS IS SIMPLE, AND LESS EXPENSIVE.
What is the process to be “grandfathered in” to NEM 2.0?
1. We Analyze <35,000 data points
You can share your energy data with a few clicks and enable us to create an accurate proposal offsetting up to 100% of your current usage.
2. We Agree on the project specifics
We review the proposal and specifics of the project and authorize the step forward into engineering.
3. We engineer and submit plans
We ensure we have all the correct information, develop the plans, and submit them to the City ahead of the April 14, 2023 deadline.
Our customers
From large commercial entities to SMBs, and nonprofits and faith-based organizations, we’ve worked with a range of customers in Los Angeles to bring sustainability, energy resilience and solar to their operations.
🌍 Chino, CA
💡 671KW System Size
🌱 19M lbs of CO2 Emissions Reduced
⏱ 3 Year ROI