NEM 2.0

On December 15, 2022, the California Public Utility Commission issued a decision on Net Energy Metering, or what is widely known as “NEM 3.0”. The commission coined it a modernization of the solar tariff program but for California solar consumers, it represents a sharp reduction in the value of credits for electricity sent back to the grid which is what makes solar such a great financial investment. As such, the simple payback for residential solar systems will be extended by several years with the adoption of NEM 3.

Earth Electric is currently at capacity for NEM2 applications but we still recommend vetting your installation contractor by the suggestions below if possible.

Here are some tips:

Always check that the contractor’s license is in good standing with the Contractors State License Board (CSLB) and every contractor should pass these litmus tests

  1. Check that your salesperson is licensed.
    Solar salespeople are required by law to be fingerprinted and licensed by the CSLB (per Business & Professions Code 7152). Owners or listed officers of a company are exempt. Licensed salespeople must also be associated with the contractor on the CSLB license detail page. Scroll to the bottom of contractor specific license page and look for the blue link “Salesperson List”. Click on it to check that your salesperson’s name is there. If there isn’t a “Salesperson list at all, then none of the salespeople are licensed.
  2. Contractors should be a long term member of CALSSA.
    Not only does this show their level of commitment to the solar community but CALSSA also advises on the proper methods for dealing with utilities and interconnection applications during the transition from NEM 2 to NEM 3.
  3. Be very cautious with signing a contract or paying a deposit before an onsite survey. Given the NEM 2 urgency and potential need to do so, keep in mind that costs may change after the site survey is conducted. The most important issues are around the main panel size and the health of your roof.


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