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Why Solar Is Still Worth it in California with NEM 3.0

homes with solar in northern california
May 1, 2023

California’s long-standing net metering laws are changing with the implementation of net energy metering (NEM) 3.0. The new incentive program changes the net metering rate structure for solar customers, leaving many homeowners wondering whether rooftop solar is still worth it.

The answer is yes—the benefits of solar panels are not going away under NEM 3.0, especially when paired with solar batteries. Keep reading to learn more about NEM 3.0 in California and how you can maximize your solar benefits under the new policy.

NEM 3.0 Aims to Strengthen the Electric Grid

California’s electric grid is under a lot of strain, which leads to failures and outages, especially during peak demand times like the late afternoon and early evening. California’s solar NEM 3.0 policy attempts to address this issue.

The new net billing structure implemented by NEM 3.0 aims to improve grid reliability during peak demand times by making solar panels with storage more valuable than solar panels alone. This will, theoretically, spur more solar battery installations throughout the state and give the grid a distributed energy storage system it can lean on during peak demand periods.

If CA’s NEM 3.0 proves successful, Californians will benefit from a stronger grid and fewer outages.

Rooftop Solar Is Still Valuable Under NEM 3.0 

NEM 3.0 may be changing the solar industry in California, but the benefits of residential solar energy systems remain strong.

Solar Reduces Your Electric Bills

Whether you install a solar-only or a solar plus battery system, you will save money on your electric bills. Solar allows you to produce your own power so you can use less grid electricity, leading to lower bills. The return on investment for solar with NEM 3.0 is just 8-9 years.

Solar Batteries Are MORE Valuable with NEM 3.0

Adding a battery to your solar system will maximize your solar savings under the new net billing structure. With battery storage, you can store the excess electricity your solar panels generate during the day instead of exporting it to the grid. Then, you can use your stored energy when your solar panels are not producing energy instead of buying power from the grid.

Solar Tax Benefits Are Stronger than Ever

The federal solar tax credit is as lucrative as its ever been thanks to an increase and expansion implemented by the Inflation Reduction Act of 2022. The solar tax credit is worth 30% of your total solar installation costs, and solar batteries are eligible!

Brower Mechanical Is the Local Leader in Solar & Battery Storage

If you missed the cutoff to be grandfathered into NEM 2.0, don’t worry—you can still benefit significantly from solar panel installation with California net metering 3.0 by including solar battery backup.

Brower Mechanical is the leading residential solar company in the Sacramento area, and we can help you go solar now. We are a full-service company and will handle your entire solar installation from start to finish, including electrical panel upgrades and add-ons like EV charger installation. We offer convenient financing options to make solar plus battery installation more affordable and we can help you take advantage of rebates and incentives.

Save more with solar plus battery backup! Call 916-624-0808 or contact us online to get your free solar quote. 

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