Changing NEM Rates Across the US

: What You Need to Know

Net Energy Metering (NEM) policies are shifting rapidly across the United States, impacting solar savings for homeowners and businesses. Here's what's happening:

• California's NEM 3.0 slashed solar export rates by 75%, from $0.30/kWh to $0.08/kWh
• 41 states and D.C. made 173 solar policy changes in Q1 2023 alone
• Many states are moving towards less favorable net billing systems
• Battery storage is becoming crucial for maximizing solar savings

Key regional changes:

1. West Coast: California's NEM 3.0 extends solar payback period from 5-6 years to 14-15 years
2. Northeast: Mostly maintaining favorable policies, with some states expanding net metering access
3. South: Florida reducing benefits for new solar installations after 2024
4. Midwest: Illinois introducing Smart Solar Billing, potentially halving solar benefits

To navigate these changes, consider:

• Installing solar before policy changes take effect
• Adding battery storage to your system
• Using smart monitoring tools like Currents to optimize energy usage

The solar landscape is evolving, but with the right strategies, you can still benefit from your investment.

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West Coast Changes (CA, NV, AZ)

The West Coast's solar landscape is changing fast. Let's dive into the big shifts happening in California, Nevada, and Arizona.

California's NEM 3.0: Shaking Things Up

On April 15, 2023, California rolled out NEM 3.0. It's a big deal:

• Solar export rates dropped from 30 cents to 8 cents per kWh.
• Payback time for solar systems jumped from 5-6 years to 14-15 years.
• New monthly charges: $8 per kW of solar capacity (about $48 for most folks).

The impact? It's huge:

• Solar sales nosedived 77-85% after NEM 3.0 was announced.
• Wood Mackenzie says new home solar installations will drop 42% from 2022 to 2023.
• By 2024, California's yearly home solar installations might hit a 10-year low.

Nevada's Solar Rollercoaster

Nevada's solar story is wild:

• 2015: They slashed net metering rates. Solar companies fled.
• 2017: Net metering came back, but at lower rates.
• Now: They use "net billing." Solar owners get 70-95% of retail price for extra energy.

Arizona's Net Billing Twist

Arizona switched to net billing in 2017:

• October 2023: They updated the program.
• Goal: Balance utility needs with solar growth.
• Solar owners get paid for extra energy, but less than retail prices.

What It Means for Homeowners and Solar Companies

These changes are forcing everyone to rethink solar:

• California homeowners are eyeing solar-plus-storage systems.
• The name of the game? Use your solar power right away.
• Solar companies are pushing smaller projects and battery storage.

Cory O'Brien from a solar company puts it this way:

"NEM 3.0 aims for an approximate payback period of nine years with or without a battery."

This sums up the new reality in California and shows why energy storage is becoming a big deal.

The West Coast's solar policy changes are like a crystal ball for the rest of the U.S. As other states try to balance grid needs, utility concerns, and clean energy goals, both homeowners and solar companies will need to adapt to this new solar era.

2. Northeast Updates

The Northeast is shaking things up with its Net Energy Metering (NEM) policies. Let's dive into what's happening in key states.

New York: Keeping Net Metering... For Now

New York's still playing nice with solar owners. In NYC, Con Edison values solar at the same rate as grid electricity. But heads up - changes might be coming:

• National Grid wants to hike rates in 2025.
• This could mean bigger bills for folks in Brooklyn, Staten Island, and parts of Queens.
• Long Island and Rockaway Peninsula might feel the pinch too.

Philip DeCicco from National Grid New York says:

"Prioritizing the energy needs of our customers is vital, and nothing is more important than the safe operation of our networks as we look for new ways of delivering energy for all our customers."

These changes don't directly hit net metering rates, but they show the energy landscape is shifting. Some solar fans worry New York might follow California's lead with less solar-friendly policies down the road.

Massachusetts: Opening the Net Metering Gates

Massachusetts is taking a different path. They're making net metering more accessible:

• New exemptions for private facilities generating 60 kW to 2,000 kW.
• Public facilities up to 10,000 kW are now exempt too.
• This could power about 1,700 homes per site for state and municipal facilities.

Michael Judge, Massachusetts Undersecretary of Energy, is pumped:

"We are very optimistic for the impact on behind-the-meter generation in Massachusetts."

These changes could save ratepayers $10 million and get more people on board with solar.

Connecticut: Solar Incentives Still Going Strong

Connecticut's not slacking on solar incentives:

• No sales tax on renewable energy equipment.
• Some towns let you skip property tax hikes from solar installations.
• Low-interest loans up to $50,000 for home energy upgrades.

For net metering, you've got two choices:

1. Sell all your solar energy to the utility at $0.3189 per kWh.
2. Traditional net metering at the current retail rate for 20 years.

New Hampshire: NEM 2.0 and What's Next

New Hampshire's running NEM 2.0:

• Solar owners get credits for extra energy, but at a lower rate.
• Credits are 75% to 95% of retail price, depending on how much you produce.
• These rules stick around until 2041 for systems under 1,000 kW.

They're reviewing NEM 2.0 now, which will shape NEM 3.0. If you're thinking about solar in New Hampshire, you might want to get moving before things change.

The Northeast's solar scene is always changing. Whether you're a homeowner or in the solar biz, keep your eyes peeled for these policy shifts to make the most of your clean energy investment.

3. South Region Status

The South is shaking up its Net Energy Metering (NEM) policies. States are trying to balance utility concerns with solar growth, leading to some interesting changes.

Florida: Solar's Wild Ride

Florida's solar scene is getting a makeover. In 2023, the Sunshine State flipped the script on net metering, giving utilities the upper hand.

Here's the deal:

• Got solar already? You're safe until 2028, with a 20-year guarantee.
• Going solar after 2024? Brace for lower energy credits:
  • 2024-2025: 75% credit
  • 2026: 60% credit
  • 2027-2028: 50% credit

An industry insider warns:

"The fight is not over. The utilities will try to build on their success this year."

The takeaway? If you're thinking about solar in Florida, don't wait. Install before 2024 to lock in better rates.

Texas: Choose Your Own Solar Adventure

Texas does things differently. Instead of a statewide net metering rule, they've got a mix of solar buyback programs through different providers.

Check out these examples:

• Austin Energy: 9.91 cents/kWh for all solar power
• Gexa Energy: 15.4 cents/kWh for extra energy
• Champion Energy: Pays based on real-time market prices

Mary Pressler, an industry analyst, explains:

"Texas does not mandate net metering by law, but many Retail Electricity Providers (REPs) and municipal power companies offer the benefit."

In Texas, it pays to shop around for the best solar deal.

South Carolina: Keeping the Solar Dream Alive

South Carolina's taking a different route. They're sticking with net metering but moving to time-of-use rates. This came after Dominion Energy tried to push for a fixed monthly rate that solar fans weren't happy about.

Tyson Grinstead from Sunrun is pumped about the decision:

"This unanimous decision will accomplish what the Energy Freedom Act set out to do: support the growth and economic viability of rooftop solar."

The new plan? Solar customers will pay a minimum monthly bill of about $13.50. That's way less than the $50 Dominion wanted.

The Rest of the South: It's Complicated

• Georgia: Limited net metering, but it's full up since 2021.
• North Carolina: Currently offers 1:1 credit, but changes might be coming.
• Louisiana and South Carolina: Recent changes have made net metering less attractive.

The South's solar scene is changing fast. If you're thinking about going solar, don't wait too long. The trend seems to be moving towards less solar-friendly policies.

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4. Midwest Changes

The Midwest is shaking up its Net Energy Metering (NEM) policies, with Illinois taking the lead. These changes are turning the solar world upside down for homeowners and businesses.

Illinois: Solar's New Playbook

Come January 1, 2025, Illinois is flipping the switch on its NEM policy. Here's the scoop:

• Now: You get a 1:1 credit for solar energy on your whole electric bill.
• Soon: Credits will only cover the supply part of your bill. That could slash your benefits in half.

It's like California's NEM 3.0 all over again. Let's break it down: ComEd's rate was about $0.143/kWh. Under the new rules? Your credits might only be worth $0.068/kWh. Ouch.

Andrew Blok, a writer and editor, puts it simply:

"The way solar panels earn you credits on your electricity bill is changing."

Smart Solar Billing: The New Kid on the Block

Illinois is rolling out Smart Solar Billing to replace old-school net metering. It's supposed to better reflect what rooftop solar and battery storage bring to the table. Here's what you get:

• A one-time $300 per kilowatt (kW) rebate for solar systems
• Another $300 per kilowatt-hour (kWh) rebate for battery storage

These perks aim to soften the blow of lower NEM benefits and get more people on board with battery storage.

Time's Ticking

If you're in Illinois and thinking about solar, don't drag your feet. Get your system installed and approved by December 31, 2024, and you'll lock in the current 1:1 Net Metering deal for 30 years from your Permission to Operate (PTO) date.

What's Cooking in the Rest of the Midwest?

Illinois isn't the only state stirring the pot:

• Wisconsin: Some utilities tried to switch from net metering to net billing in 2023. They got shot down, but it's a sign of what's to come.
• Other states: Many Midwest utilities are pushing for net billing, which usually means less money for the solar energy you feed back to the grid.

What This Means for You

1. Move It or Lose It: In Illinois? Installing solar before 2025 could save you big bucks in the long run.

2. Battery Power: With the new incentives, adding a battery to your solar setup might be a smart move.

3. Keep Your Ears Open: Stay on top of policy changes in your state. The trend of shrinking NEM benefits is spreading like wildfire across the Midwest.

The Midwest's solar scene is changing fast. It's not all smooth sailing, but there are still opportunities to come out on top if you play your cards right.

5. How Currents Helps

Currents isn't your average solar monitoring app. It's a game-changer for homeowners with solar panels, especially given the shifting Net Energy Metering (NEM) rates across the US.

Here's how Currents is shaking things up:

Real-Time Optimization

Currents shows you exactly how your solar system is performing, right now. It looks at when your panels are pumping out the most power and when your local NEM rates are at their best. Then, it tells you when to run your energy-hungry appliances. This is huge for places like California, where NEM 3.0 has slashed export rates.

Maximizing Solar Credits

NEM rates are all over the place these days. Currents does the heavy lifting for you, making sure you're squeezing every penny out of your excess solar energy. Take Illinois, for example. They're rolling out this new Smart Solar Billing thing. Currents helps you navigate that and make the most of the $300 per kW solar system rebate.

Plays Nice with Other Energy Devices

Currents doesn't stop at solar panels. It talks to your battery storage and EV charger too. This is super helpful in places like Florida, where recent changes have made battery storage more appealing. Currents can tell you when to store energy and when to use it, saving you more cash.

Personalized Savings Strategies

Every home is different, and so is every state's energy policy. Currents gets that. It looks at your specific situation and gives you tailored advice. If you're in New York, where Con Edison still values solar at the same rate as grid electricity, Currents helps you milk that policy for all it's worth.

Stays on Top of Policy Changes

The solar world is always changing. Massachusetts is opening up net metering to bigger facilities. California is shaking things up entirely. Currents keeps you in the loop and helps you roll with the punches. It's like having a solar policy expert in your pocket.

Troy Fox from Evergreen Electrical puts it this way:

"With a solar monitoring app, you can keep on top of your energy consumption, switching off appliances you are not currently using in order to save energy."

Currents takes this idea and runs with it. It doesn't just show you what's happening - it tells you what to do about it.

Benefits and Drawbacks

Net Energy Metering (NEM) policies are changing across the US. Let's look at how these changes affect homeowners and businesses in different regions, and how Currents can help.

West Coast: Ups and Downs

The West Coast has seen some big changes:

• California's NEM 3.0 pushes for more battery storage
• Nevada pays 70-95% of retail price for extra energy
• Arizona's new program tries to balance utility needs and solar growth

But it's not all good news:

• California's solar export rates dropped from $0.30/kWh to $0.08/kWh
• It now takes 14-15 years to pay off a solar system in California, up from 5-6 years
• California added new monthly charges: $8 per kW of solar capacity

These changes have hit solar companies hard. Cory O'Brien from a California solar company says:

"NEM 3.0 aims for an approximate payback period of nine years with or without a battery."

This shows how important energy storage and smart energy use have become.

Northeast: Staying Strong

The Northeast is still pretty solar-friendly:

• New York keeps good net metering rates
• Massachusetts made net metering easier to access
• Connecticut offers strong solar incentives and two NEM options

But there are some concerns:

• Possible rate hikes in New York could cut into solar savings
• New Hampshire's NEM 2.0 gives lower credits than before

Michael Judge, Massachusetts Undersecretary of Energy, is hopeful:

"We are very optimistic for the impact on behind-the-meter generation in Massachusetts."

South: Changing Times

The South is seeing some changes:

• Florida keeps old rules for existing solar customers until 2028
• Texas has different solar buyback programs
• South Carolina still has net metering with time-of-use rates

But there are challenges:

• New solar installations in Florida will get less for their energy
• Texas doesn't have statewide net metering rules
• Georgia and Louisiana have limited net metering options

An industry insider warns about Florida:

"The fight is not over. The utilities will try to build on their success this year."

Midwest: Getting Ready for Change

The Midwest is bracing for changes:

• Illinois offers rebates for solar systems and batteries
• Wisconsin kept net metering in 2023, despite pressure from utilities

But there are some downsides:

• Illinois' new Smart Solar Billing could cut solar benefits in half
• Many Midwest utilities want less favorable net billing

Andrew Blok, a writer and editor, sums up the changes in Illinois:

"The way solar panels earn you credits on your electricity bill is changing."

How Currents Helps

With all these changes, Currents can help solar owners:

1. Real-time optimization

Currents helps you get the most from your solar by matching your energy use with peak production and the best NEM rates.

2. Adapting to policy changes

As NEM policies change, Currents keeps you informed and adjusts strategies to help you save.

3. Working with storage

In places pushing for batteries, Currents helps you decide when to store and use energy.

4. Personal strategies

Currents gives advice based on your specific situation and local energy policies.

Key Takeaways

The Net Energy Metering (NEM) scene is shifting fast across the US, shaking things up for solar users. Here's what you need to know:

West Coast Shakeup

California's NEM 3.0 hit like a ton of bricks on April 15, 2023:

• Solar export rates crashed from $0.30/kWh to $0.08/kWh.
• Payback time for solar systems shot up from 5-6 years to 14-15 years.
• New $8 monthly charges per kW of solar capacity appeared out of nowhere.

Result? Solar sales took a nosedive - we're talking a 77-85% drop, according to the California Solar and Storage Association.

Northeast Holding the Line

While the West Coast is in turmoil, the Northeast's keeping it cool:

• New York City's sticking to its guns on net metering rates.
• Massachusetts threw open the doors to net metering, potentially saving folks $10 million.
• Connecticut's offering not one, but two NEM options with some sweet incentives.

Michael Judge, Massachusetts Undersecretary of Energy, is pumped:

"We are very optimistic for the impact on behind-the-meter generation in Massachusetts."

South and Midwest Mixing It Up

The South and Midwest are doing their own thing:

• Florida's playing nice with existing solar customers until 2028, but new installations? Not so much.
• Illinois is rolling out Smart Solar Billing, throwing in some rebates to soften the blow.
• Texas? It's the Wild West - no statewide rules, just a patchwork of provider programs.

Rolling with the Punches

As NEM policies keep shifting, here's how to stay on top:

1. Battery Storage is Your Friend

In many states, adding batteries to your solar setup can help you squeeze more savings out of the new NEM rules.

2. Don't Snooze, You Lose

If your state's about to change its policy, getting solar installed ASAP could lock in better rates.

3. Keep Your Ear to the Ground

Stay in the loop on local policy changes. Knowledge is power, especially when it comes to solar investments.

4. Time-of-Use Rates: Your Secret Weapon

Get savvy about when you use energy. Time-of-use rates can be a game-changer for your savings.

5. Tech it Up

Tools like Currents can help you squeeze every last drop of performance out of your solar system, even as NEM rules change.

Troy Fox from Evergreen Electrical drops some wisdom:

"With a solar monitoring app, you can keep on top of your energy consumption, switching off appliances you are not using in order to save energy."

The solar game is changing, but with the right moves and tools, you can still come out on top.

FAQs

What's the deal with NEM 1, 2, and 3?

Net Energy Metering (NEM) policies have changed a lot. Here's the scoop on how they differ:

NEM 1.0 and 2.0 were pretty similar:

• You got retail rates for your solar exports
• 1:1 credit for extra energy sent to the grid
• You could zero out your whole electricity bill

NEM 3.0? It's a whole new ballgame:

• Solar exports are worth way less
• Credits based on "avoided cost" (wholesale price)
• Export rates dropped by about 75%
• New charges and rules for solar owners

Let's talk numbers:

Under NEM 2.0, if electricity cost $0.30/kWh, you'd get $0.30 for each extra kWh you sent out. With NEM 3.0? Maybe $0.08. Ouch.

This changes everything for solar payback. EnergySage puts it well:

"NEM 3.0 has increased the savings potential of pairing your solar panel system with a battery."

Translation? Batteries are your new best friend.

If you're thinking about solar, here's what you need to know:

1. Timing is everything

In states switching to NEM 3.0 (looking at you, California), getting solar before the cutoff date could save you big time.

2. Batteries are no longer optional

With NEM 3.0, storing your extra energy makes way more sense than sending it to the grid.

3. Payback takes longer

NEM 3.0 stretches the average payback period from 5-6 years to 14-15 years. That's a big jump.

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