Net Energy Metering 2.0 has three major differences from California’s traditional NEM:
- Pay a one-time interconnection fee, estimated to be $75-150
- Customers must enroll in a time-of-use rate
- Pay non-bypassable charges for all energy delivered by the utility
- This is the mathematical equivalent of haircutting exports, or discounting the rate solar gets credited at.
Under traditional Net Energy Metering, a solar customer is billed for net energy consumption over the course of a billing period. Using the grid like a free battery, solar energy is exported to the grid during the day to generate NEM credits. These credits can be redeemed for energy consumed at night or on rainy days. Under traditional NEM, a customer’s monthly electric costs are not impacted by the amount of solar energy they consume immediately (self-consumption) vs. how much solar energy they export to the grid during the day, generating NEM credits that they consume at night or on a later date.
Under NEM 2.0, a solar customer will have to pay non-bypassable charges (NBCs) for every kilowatt hour of energy that the utility delivers to their property. These NBCs can no longer be offset with solar exports to the grid, which means that a customer who exports a lot of solar energy to the grid during the day and consumes a lot of energy at night will have higher utility electricity costs under NEM 2.0 than they would have under the traditional NEM. The NBCs are approximately $.0.25/kWh for energy delivered by the utility, however the number of kilowatt hours for which the solar customer has to pay NBCs depends on the customer’s individual energy profile; a customer with high self-consumption will see almost no difference in electricity costs under NEM 2.0 vs traditional NEM. On the other hand a residential customer with low self-consumption (e.g. someone who exports solar energy during the work day and then consumes a lot of energy at night) could see $5-10/month of NBCs added to their monthly electricity costs compared to what their costs would have been under traditional NEM.
How Will This Effect the Economics of My System?
It depends on a number on things, including:
- How much solar you export back to the grid, which is determined by
- How big the solar system is sized, relative to your total annual usage
- Your unique load profile, which shows when you use energy. It also depends on
- Solar system design specifications
- How much the NBC’s collectively amounts to on a particular rate schedule.
It’s hard to generalize what the net effect is, because it depends on a number of variables which are specific to each customer.
What Are My Options?
The first step to creating this analysis is the provision of interval meter data.
Adroit Energy appreciates the opportunity to provide energy solutions. We are committed to helping you achieve your energy goals. Our team will be happy to provide a complete payback analysis so you can see the economics of your solar photovoltaic system.
If you are interested in a same day payback analysis, email me at email@example.com.
Also, if you have any questions, or experiencing trouble, feel free to call me at 858-483-3568 ext. 9.