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Why You Should Still Go Solar

Sunny Days Ahead: Why NEM 3.0 Shines Bright for SoCal Solar!

Don't be swayed by the introduction of NEM 3.0; it's still a golden time to harness Southern California's abundant sunshine with solar panels. While the nuances of Net Energy Metering evolve, the advantages remain strong, especially when you factor in the attractive Federal credits now available for battery systems. Storing solar power for those peak hours isn't just smart—it's also financially rewarding. Dive into this sun-kissed opportunity and lock in savings while boosting your home's resilience and eco-friendly stature.

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Benefits of Solar Energy in Southern California

Southern California's consistent sunlight offers an excellent opportunity for solar energy, leading to reduced energy bills and environmental benefits. With the advantages of Net Energy Metering (NEM), local rebates, and decreased reliance on traditional grid systems, our region presents a persuasive argument for solar adoption.

NEM 3.0

The CPUC estimates that the average residential customer could still save over $100 a month on their energy bill through NBT.

Battery Systems

The Inflation Reduction Act increased the federal tax credit for solar systems to 30% and now includes a 30% credit for battery storage.

Energy Indepdendence

Solar panels provide homeowners with greater energy independence, reducing reliance on grid electricity and increasing energy prices.

Abundant Sunlight

Southern California receives a significant amount of sunlight throughout the year, making it ideal for solar power generation.

Increase Your Home Value

Your home value increases by $20 for every $1 you save on energy bills, according to the National Renewable Energy Laboratory.

Cost Effective

After the payoff period, homeowners can enjoy virtually free electricity for the remaining lifespan of the panels, often 15-20 more years.

NEM 3.0 vs NEM 2.0 - What's the Real Difference

Net Energy Metering (NEM) policies have been crucial in driving solar adoption. As the solar market matures and energy policies evolve, so too have the rules surrounding NEM. Here are some key differences between NEM 2.0 and NEM 3.0.

Non-Bypassable Charges (NBCs)

Under NEM 2.0, customers bore responsibility for NBCs for all electricity they consumed from the grid. However, with NEM 3.0, the treatment of these charges may vary based on specific utility policies or further changes in the NEM program.

Interconnection Fees

While interconnection fees under NEM 2.0 varied, many utilities either charged nominal fees or none at all for solar interconnection. But NEM 3.0 might bring changes to these fees, reflecting new assessments of the costs or benefits solar customers bring to the utility grid.

Compensation Rates

The compensation dynamics have shifted between the two versions. Under NEM 2.0, customers received compensation at retail rates for any excess solar energy they fed back into the grid. With NEM 3.0, there's an adjustment in this rate. The compensation for surplus energy might now be set at a value potentially lower than retail rates, reflecting the evolving perception of the true value solar energy provides to the grid.

Grid Access Charges

NEM 2.0 policies didn't usually encompass any grid access charges. In contrast, NEM 3.0 introduces the potential for a monthly grid access charge for solar customers, depending on individual utility decisions.

Battery Storage Incentives

NEM 2.0 did not prioritize the integration of battery storage. However, NEM 3.0 places a more substantial emphasis on promoting battery storage due to its crucial role in grid reliability and energy supply regulation. The newer policy might offer more favorable terms or rates for energy stored in batteries.

Grandfathering Provisions

Customers operating under NEM 2.0 policies were usually grandfathered into those conditions for a set period, often around 20 years. However, as NEM 3.0 rolls out, the specifics of these grandfathering provisions might change, implying that new solar adopters could face different terms than those who were onboarded under NEM 2.0.

Now is the Time for a Battery System

Federal tax credits now cover not only solar panels but also battery storage installations. Enjoy up to 30% off the cost returned on your taxes, leading to reduced energy bills and enhanced resilience during power disruptions. And for those with existing solar setups, adding a battery from January 1, 2023, lets you tap into that same 30% savings!

Installing a Battery on an Existing System

Absolutely, you can enhance an existing solar system by adding a battery bank. Doing so can mitigate the effects of blackouts, ensuring round-the-clock solar electricity availability. Most solar panels seamlessly integrate with energy storage systems.

While the total cost of a solar battery installation fluctuates based on the manufacturer, battery type, power capacity, and associated fees, typical prices for renowned solar batteries range from $9,500 to $23,000. Importantly, leveraging the 30% Federal Tax credit can substantially offset these costs, making the investment even more appealing.

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Install a Solar + Battery System

Installing a solar system with a battery is particularly timely and advantageous in light of NEM 3.0. The newer Net Energy Metering (NEM) policies focus on enhancing the grid's reliability and promoting battery storage. By integrating a battery with your solar system, you can maximize the benefits of NEM 3.0, as it better values and compensates for stored and dispatched energy. This setup not only allows homeowners to store excess solar energy for later use, enhancing energy independence and resilience during peak times or outages, but also offers potential economic benefits under the updated metering system.

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