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.