Mario Castillo Electric Sheds Light on NEM 3.0 & Our NEW Solar Energy Services

Mar 28, 2024 | Press Release, Solar Energy

A significant shift in the solar energy landscape is on the horizon and Mario Castillo Electric is on the cutting-edge in providing updated solar services to our clients. The change that is radicalizing the Long Beach area’s approach to renewable energy manufacturing and consumption is the next iteration of Net Energy Metering (NEM) or NEM 3.0. NEM 3.0 is California’s new billing policy for solar energy that computes how excess solar energy is credited to homeowners. The NEM 3.0 policy builds upon NEM 1.0 and NEM 2.0.

Mario Castillo Electric understands the impact of this initiative on our customers, clients and on the services we provide! Let us help you prepare for this new NEM 3.0 wave, as it promises to bring innovative opportunities and savings. As we announce our new offering of solar energy services let us help educate you on the benefits and impacts of California’s NEM 3.0 policy.

    Defining and the Basics of NEM 3.0

    Net Energy Metering (NEM) is the regulations that govern the utility and compensation of solar-generated electricity in California. NEM 1.0 laid the foundation and offered solar panel owners the full retail value of the electricity they generate and export to the grid. This was a one-to-one credit, or kilowatt-hour for kilowatt-hour.

    NEM 2.0 involved state-level policies that introduced a granular approach to recording solar credits, with time-of-use rates and other adjustments aimed at improved billing transparency and fairness. The NEM 2.0 revisions brought complexities and restrictions that were less understood and in turn not as appealing to customers, ultimately dampening enthusiasm for solar adoption by homeowners.

    NEM 3.0 is a more sophisticated version of solar energy consumption. It builds upon NEM 1.0 and NEM 2.0 by guaranteeing stable compensation for exported energy. It removes caps on program participation, and integrates new technologies like battery storage. NEM 3.0 is the answer to long-standing challenges in solar energy and sets the stage for a more equitable and efficient solar economy.

    Exploring the Consumer Impacts & Benefits of NEM 3.0

    Mario Castillo Electric is helping our customers explore the power of NEM 3.0, an upgraded program that brings dynamic changes and substantial benefits over NEM 2.0 and NEM 1.0. The main differences between NEM 3.0 and NEM 2.0 are in how energy is managed. Unlike NEM 2.0 which allows meter spinning backward, NEM 3.0 facilitates intelligent import and export of energy. With the introduction of mandatory rates in NEM 3.0, you will notice a large delta between peak and off-peak. In addition, NEM 3.0 introduces hourly export rate variations, offering rates from $0.001 to $2.68 per kWh.

    Comparing NEM 3.0 with NEM 1.0, both allow for smart importing and exporting of energy, but NEM 3.0 takes it a step further with added features and a high degree of protection from escalating utility rates. You also benefit from hourly export rate variations, something that was absent in NEM 1.0. For instance, consuming solar immediately in the home rather than exporting to the grid, and avoiding 4 to 9 p.m. on-peak usage, maximizes savings value under NEM 3.0.

    NEM 3.0 comes with long-term benefits that enhance renewable energy experiences. With solar and battery systems under NEM 3.0, you stand to gain energy savings of 100% and a significant bill offset of 70% - 90%. The payback period is typically 5-7 years and the net cost savings over the system's lifetime range from $19k to $44k. In addition, there are opportunities for great savings with solar battery installation by qualifying for the federal solar tax credit making the solar energy investment very attractive to homeowners!

    The Technical Innovations Behind NEM 3.0

    One of the most significant changes NEM 3.0 brings is the full integration of advanced battery storage solutions into solar systems. This move marks a big shift from traditional NEM schemes that were often tailored exclusively for grid-tied solar installations. By allowing solar users to store their surplus energy on-site, NEM 3.0 encourages self-consumption, which is both greener and more cost-effective. The new policy incentivizes a more balanced approach to energy distribution and management, mitigating the grid instability concerns that have plagued utilities.

    A Greener and More Reliable Energy Grid

    The grid of the future is one that seamlessly integrates distributed energy resources (DERs) to reduce carbon footprints and enhance resilience. Solar energy with battery storage is at the heart of this vision. By fostering the adoption of such systems, NEM 3.0 facilitates the transition to a more sustainable, reliable grid that is less susceptible to outages and climate-induced disruptions.

    NEM 3.0's Environmental Impact

    By supporting cleaner energy and reducing peak demands on the grid, NEM 3.0 can drive significant environmental advantages. It paves the way for a less carbon-intensive future by enabling a greater portion of our energy consumption to be sourced from renewables. This not only addresses climate imperatives but also mitigates local air pollution, improving public health and well-being.

    Enhancing Grid Resilience

    Are you worried about peak demand periods? NEM 3.0 allows you to maximize your return on investment by selling energy to the grid during these periods. And with the addition of a small and efficient battery, your bill offset can skyrocket from 55% to 70%-90%, future-proofing you against rate increases.

    Battery storage, under NEM 3.0, not only optimizes personal energy usage but also assists in stabilizing the broader grid. By storing excess solar energy, batteries can discharge it during periods of high demand, reducing stress on the grid. This functionality assumes a critical role in enhancing grid resilience, especially in regions prone to extreme weather events or those with aging energy infrastructures.

    Look Forward with Mario Castillo Electric’s Solar Services

    The solar revolution is no longer on the horizon—it is underway! Get aligned with NEM 3.0, next-generation technologies, and solar installation services offered through Mario Castillo Electric. With NEM 3.0 serving as a compass toward clean, renewable energy it’s time to rethink the grid, and develop your roadmap to a brighter, greener tomorrow. Unleash the power of NEM 3.0 and harness the future of renewable energy more efficiently and profitably. Contact Mario Castillo Electric today to discuss implementation options and next steps!

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