Net Energy Metering (NEM) 3.0 is the latest version of a policy that is being developed and implemented by the California Public Utilities Commission (CPUC), which is a government agency responsible for regulating utilities and implementing energy policies in California. The policy governs how customers with rooftop solar panels are credited for the excess energy they generate and feed back into the grid. Naturally, solar installers have concerns that NEM 3.0 will result in decreased incentives for customers to install solar panels and therefore cause a reduced demand for their services.
The changes in NEM 3.0 aim to address the costs associated with interconnecting and maintaining the grid, which are currently borne by all utility customers, including those without solar panels. However, the changes may also affect how solar customers are compensated for the excess energy they generate and send back to the grid. This would result in lower credits for excess energy generated by rooftop solar panels, reducing the financial incentive for customers to install them. Additionally, the implementation of new fees and charges for interconnecting and maintaining the grid could also make solar systems less affordable for customers, further reducing future demand for solar installations.
On the other hand, some solar customers and installers may feel a sense of urgency to complete solar projects before the policy changes take effect, leading to rushed demand to get solar projects sold. There are several factors that could influence the behavior of solar customers and installers leading up to the implementation of NEM 3.0. For example, some customers may have been planning to install solar panels regardless of the policy changes, while others may be waiting to see how the policy changes will affect the economics of solar energy.
In a follow-up blog, we will share some thoughts on how Solar Installers should better prepare for NEM 3.0.
Blu Banyan’s SolarSuccess platform is built for solar installers to help them overcome the challenges posed by NEM 3.0 and beyond. SolarSuccess is a end-to-end business management cloud-based SaaS platform that is native to Oracle’s NetSuite, and is tailored for Solar Installers to scale and grow their business.
If you would like to learn more about how SolarSuccess can optimize your solar business, explore the modules or schedule a 15 minute chat with our team.
