Yearly True Up Versus Monthly With NEM3
NEM 3’s Net Billings Rates for 2023
Once per year, a customer on NEM 1 or NEM 2 receives a true-up bill where any credits that remained are credited at the “Net Surplus Compensation Rate.” Unfortunately, with the implementation of NEM 3, True-Up bills will now be calculated monthly for NEM 3 customers. These new solar customers will receive a monthly True-Up Bill that forces them to cash out every month. Luckily, there is still time to get NEM 2.0!
What is Net Billing (NEM 3)?
NEM 3 customers will be on a new form of solar credits call Net Billing. Net Billing is a monthly calculation of a true-up bill, where a customer’s consumption and exports to the grid are tabulated month to month. Additional credit earned from exporting solar energy will no longer carried over to the next month.
Credits will be determined by the Avoided Cost Calculator, or ACC which has different rates for every hour of the year. Peak, Partial Peak and Off Peak rates for blocks of time will no longer apply to Net Billing. This new rate plan on average is 75% less than they are for NEM 2.0 customers. DURING OUR TYPICALLY BEST OVER-PRODUCTION MONTHS, NEM 3 compensation rates will be around 1 cent per kWh during the daytime, compared to the current 37 cents that PG&E advertises.
Customers on NEM 1 and NEM 2 will remain on Net Energy Metering for the remaining 20 years of their Interconnection Agreement contract. Monthly Net Billing will not apply to these customers during the remainder of their grandfather period.
Time is running out to remain on NEM 2.0 and receive a once in a lifetime buyback rate plan. The DEADLINE for your NEM 2.0 reservations to be processed and accepted is a lot closer to March 15th than the perceived April deadline. Solar Bill Review can help you review your current utility bill and create a solar panel system that is right for you.