Going Solar will always be a financially savvy investment for the future. But it’s better to do it now and lock in your rates before the new charges take place. Going solar is the greatest thing a household can do in its lifetime for the environment. And, not to mention, you’ll avoid future rate hikes from your utility!

California utilities PG&E, SDG&E, and SCE allow for 5% of their customers to be participants in the current NEM program whereby they receive a credit for every kilowatt-hour of energy their solar power system feeds back into the grid. Once the cap is met, new customers will go to NEM 2.0 and have a less favorable exchange rate on their production.

To get grandfathered into the current program, your system must be installed and brought online before the cap is reached. PG&E and SDG&E have already reached their cap. SCE’s cut-off is fast approaching! Then after your 20-year interconnection agreement concludes, you will be transitioned to NEM 2.0.

More and more customers are already scrambling to get the best benefits and that, in turn, is speeding up the deadline.

NEM is the program which connects homeowners to the electrical grid. Electric billing goes from monthly to an annual reconciliation. If your solar system exported less than what you used, you pay the difference. But many solar owners produce more than they used and are entitled to compensation.