The California Public Utilities Commission implemented NEM 3.0 in April 2023, which has brought about several changes in the way solar energy is managed in the state. However, some businesses may have missed out on the savings offered by NEM 2.0. Fortunately, there is still an opportunity for them to qualify for NEM 2.0 pricing through a provision called NEM-A.
NEM-A is a provision that allows commercial businesses, farmers, and municipalities with two or more electrical meters to remain on the NEM 2.0 program. The program provides net metering credits for solar energy that is produced and consumed on-site, which can help businesses save money on their electricity bills.
For businesses that missed out on NEM 2.0 savings, NEM-A is an excellent opportunity to gain energy independence. By producing their own solar energy, businesses can reduce their reliance on the grid, which is especially important during peak demand periods when electricity rates are typically higher.
Furthermore, solar energy is a clean and renewable source of energy, which can help businesses reduce their carbon footprint and promote sustainability. This can also be a valuable marketing tool for businesses that prioritize environmental responsibility, as it can help attract environmentally conscious customers.
To qualify for NEM-A, businesses must meet specific eligibility criteria. They must have two or more electrical meters and be interconnected to the same distribution feeder. Additionally, businesses must submit an application to their utility company to participate in the program.
Once enrolled in NEM-A, businesses will continue to receive NEM 2.0 pricing for the next 10 years. This can provide significant long-term savings, as electricity rates are projected to continue increasing in the coming years. In addition, businesses can still take advantage of other solar incentives, such as the federal investment tax credit, which can offset the cost of installing solar panels.
NEM-A is an excellent opportunity for businesses that missed out on NEM 2.0 savings to gain energy independence and reduce their electricity costs. By producing their own solar energy, businesses can reduce their reliance on the grid and promote sustainability. Call Pickett Solar today, or use our online contact form to see your commercial business qualifies for NEM-A.
