NEM 3.0 Update and Potential Proposal Date

Hey there solar people, it’s me again!

I have been meaning to post an update after getting a number of questions on old posts and DMs asking what the status of NEM 3 was. And then the Inflation Reduction Act (IRA) happened out of the blue, which took up a tremendous amount of time parsing through.

The long and short of the IRA is the 30% ITC is back for 10 years, starting January 1, 2022. So if you have installed a system this year already, you qualify for an extra 4% you weren’t expecting! You may qualify for more, but they must draft rules at the Treasury Department about how those bonus amounts work. There is also an EV credit that will drive more solar adoption and programs for US-based renewable energy manufacturing, but those facilities will not come online until at least 2024/2025. It is not as positive for the climate or renewables as the Build Back Better bill was, but it is still the largest climate action bill to date. Taking this action now will have a larger impact on the climate than passing the BBB in 4-6 years.

Now the scuttlebutt around CALSSA is that the CPUC will release the draft proposal for NEM 3 on September 29th. That will kick off another 30 days (minimum) of public comment. Then they will schedule a vote in November or December to vote on the proposal (check out the dates voting meetings happen here). Then there are 120 days from the vote until the grandfathering window ends for NEM 2. So you still have until March 2023 to have your solar system installed and your solar company files for PTO/interconnection to be grandfathered into NEM 2.

Now they can actually make changes by vote from the podium, so we still have time once the new proposal comes out to sway the commissioners. And it is more important than ever to make your voice heard.

The concern is that the utilities will point to the IRA and encourage the commissioners to go with a more draconian NEM 3 because of the additional federal subsidies. The extra 4% ITC helps but is not enough to offset the original NEM 3 proposed changes. We need a more measured approach that gradually transitions to a lower credit value, does not cut off 5 years of grandfathering without customers’ consent, allows California to continue towards its climate goals, and doesn’t put renewable energy savings out of reach right before lower-income ratepayers who have been historically shut out of the benefits of solar get to benefit from IRA programs for low-income families, nonprofits, government organizations, and the recent executive order on community solar programs.

Here is my list of everything you can do to make your voice heard on this issue:

1. Call Governor Newsom. He controls the CPUC and appointed all five board members. You can leave a message at 916-445-2841.

2. Leave a [written public comment to the CPUC regarding NEM 3](https://apps.cpuc.ca.gov/apex/f?p=401:56:0::NO:RP,57,RIR:P5_PROCEEDING_SELECT:R2008020).

3. Go to [https://www.savecaliforniasolar.org/](https://www.savecaliforniasolar.org/) and sign the petition.

4. Mark the [CPUC public votes](https://www.cpuc.ca.gov/events-and-meetings?search=&topicCategoryFilters=&programCategoryFilters=&eventTypeFilters=41a16e14c9d1493fba5e5bb59656e1ff&divisionFilters=&sort=&view=&activeFilters=eventtypes%7C&page=1) in your calendar and be ready to make a comment by phone. This was the best thing you could do until we blew their phones up for 7.5 hours in February, and they made a new rule that they can cut calls off to attend to the meeting agenda. However, we still want to have more anti-NEM 3 voices than utility shills on the calls they do allow. [This page details making a comment in person or by phone](https://www.cpuc.ca.gov/about-cpuc/transparency-and-reporting/cpuc-voting-meetings).

5. If you are in the Sacramento area or are willing to drive, CALSSA will be organizing a massive rally in October or November once the proposed decision is released. Stay tuned for more details.

6. And finally, you can donate to the fight against NEM 3. Both the [Solar Rights Alliance](https://solarrights.org/donate/) and the [California Solar and Storage Association (CALSSA)](https://calssa.app.neoncrm.com/np/clients/calssa/donation.jsp?campaign=59&test=true&constTypeFlag=org) are leading the fight but are currently being outspent 4-to-1 by the utilities with paid advertising. This is something anyone outside of California can do because you can be sure that if NEM 3 passes in California, your state is probably next for a solar tax.

I’ll be around for a few hours to answer any questions about these developments. AMA!