What If I Miss the NEM 2.0 Deadline?
There’s a deadline for the NEM 2.0 solar program in California before NEM 3.0 takes over. So, what happens if you don’t go solar before April 14, 2023?
It’s likely you’ve heard about the changes coming to the Net Energy Metering program in California. The official deadline in Southern California Edison (SCE) to submit applications for a solar energy system installed on your Coachella Valley home or business is Friday, April 14, 2023. What happens if you miss that deadline? The good news: switching to solar energy sooner is still better!
The New Solar Program, aka NEM 3.0
The new California solar program is being called NEM 3.0; however, SCE is also referring to NEM 3.0 as the “Solar Billing Plan.” If you hear this term, know they mean NEM 3.0!
SCE Still Has to Update Its Billing
If you make the switch to residential or commercial solar energy after April 14, SCE will not have its Solar Billing Plan ready to officially roll out, and the California Public Utilities Commission (CPUC) has required the utilities to bill solar adopters at NEM 2.0 rates until their billing system is ready. This process is expected to take just over a year, meaning if you go solar in May, you’ll receive NEM 2.0 benefits right away. The best part? SCE is not allowed to request back pay for the benefits!
Adders: What Are They?
In the first five years of NEM 3.0, SCE has included “adders” to their rate structure as an additional rooftop solar incentive. For the first year, you’ll receive an additional 4 cents per kWh on top of their normal rates, meaning you earn more! It drops by 20 percent every year until it disappears, so it’s optimal to take advantage of these adders while you can.
The Federal ITC Is NOT Going Away
Even under NEM 3.0, the Federal Income Tax Credit is still here, and you should take full advantage! Currently, it’s set at 30% and does not decrease to 26% until 2033. For this reason, we advise speaking to your CPA or tax professional about how best to capitalize on this rooftop solar incentive for your home or business.
Our Coachella Valley Solar Experts are Here to Help
If you have been considering making the switch to a solar panel system for your home or business, it’s time to get in touch with our solar experts in the Coachella Valley. At Renova Energy, our goal is to help you save big!
Reach out to our certified Energy Consultants and find out how Renova Energy can help you save!