How OpenSolar models California's NEM 3.0

Summary:

This article guides you through how to transition a solar project from NEM 2.0 to NEM 3.0 rates in OpenSolar. You'll learn how to identify projects using outdated rates, search for NEM 3.0 tariffs in the OpenSolar utility rate database, and view detailed information about NEM 3.0 compensation structures.

Table of Contents

• Transitioning a System from NEM2.0 to NEM3.0 Rates
• Searching for NEM3.0 Rates Available in the OpenSolar Database
• Viewing the Details of a NEM3.0 Rate

Overview of California’s NEM 3.0

California’s Net Energy Metering (NEM) 3.0 policy took effect for all interconnection applications submitted after April 14, 2023. It significantly alters the financial incentives for going solar compared to NEM 2.0, particularly due to lower solar export rates and a shift to Net Billing instead of traditional net metering.

Affected Utilities:

NEM 3.0 applies to residential and commercial customers served by California’s three major investor-owned utilities:

• Pacific Gas & Electric (PG&E)

• Southern California Edison (SCE)

• San Diego Gas & Electric (SDG&E)

Transitioning a System from NEM 2.0 to NEM 3.0

OpenSolar provides built-in notifications and tools to help you seamlessly update older projects using NEM 2.0 rates.

Where You’ll See Notifications:

• Proposal Tab:
  When previewing a proposal built with NEM 2.0, a banner will appear notifying you that NEM 3.0 applies. Click the provided button to instantly switch to NEM 3.0 savings estimates.

• Energy Tab:
  A similar notification appears here when a NEM 2.0 rate is detected. Again, a single click updates the project to use NEM 3.0.

This ensures that you’re always quoting customers with the most accurate and up-to-date assumptions for their utility.

Searching for NEM 3.0 Rates in OpenSolar

To locate NEM 3.0 rates within OpenSolar’s utility rate database:

1. Go to Control > Utility Rates

2. In the search bar, type “NEM3”

3. Relevant tariffs for PG&E, SCE, and SDG&E that comply with NEM 3.0 will appear in the results

This makes it easy to assign the correct rate when configuring a project or creating new design templates.

Viewing NEM 3.0 Rate Details

When viewing a utility rate labeled with NEM 3.0, you can explore the specifics of how solar exports are compensated.

Navigate to:

• Control > Utility Rates > View

• Scroll to the Solar Compensation section

• Review the export rates, which are typically:

  • Time-varying

  • Defined hourly and seasonally

  • Set at values significantly below retail usage rates

These details are essential for accurately modeling financial outcomes under NEM 3.0, especially in proposals involving batteries.