There are major changes on the horizon that will impact how much you can save by going solar. The current net metering program, NEM-2, will be replaced by NEM-3 this year, and PG&E and the other big utility companies are pushing to reduce the cost-saving benefits solar customers enjoy.
While we don’t want to be the bearer of bad news (who does?), it’s important to understand how NEM-3 could negatively affect you if you wait to go solar.
- Your ROI will decrease. The big utility companies suggested that “bill savings eventually cover the cost of the investment over the life of the eligible renewable generating system.” Translation: Instead of a 7-9 year payback period, it could take you 10-12+ years to break even on your solar investment.
- Change to the credits compensation rate means you will pay a higher export tariff on energy sent back to the grid. These NEM credits would be far below retail, and put more money in PG&E’s pocket.
- You can expect higher fixed charges and demand charges, and increased grid access fees.
- New tariffs may require additional solar panels be installed on your roof, even though these additional panels may not eliminate the majority of your PG&E bill.
But there is GOOD news! Getting a solar system installed now will lock you into NEM-2—and all its benefits and savings—for the next 20 years! Need we say more? Contact us today to get started before the eligibility period ends.
Do you want to join the fight to protect solar rights in California? The Solar Rights Alliance and Save California Solar have actionable ways for you to get involved today.