(KERO, Calif.) — There are two different ways solar panels save you money.
They generate electricity you can use as it’s made, or you can get a credit on your bill from your utility company for electricity your system puts back into the power grid.
Right now, that credit equals what you would pay the company for that amount of electricity.
Overall, it takes about six to seven years for your solar system to start paying for itself, but that’s about to change.
“Net metering isn’t over. It’s just a shifting," said California Solar and Storage Association executive director Bernadette Del Chiaro
NEM stands for net energy metering. Current solar owners fall under NEM 2.0, but anyone who submits an interconnection application after April 14 will fall under NEM 3.0.
The biggest change is a 75% reduction in the value of that credit through your utility company.
Del Chiaro said it will now take about nine to ten years for systems to start paying for themselves.
The good thing is, a battery can help.
"You can store all of that electricity during the day and then you can either use it in the evening or export it back to the grid and get that high credit," said Del Chiaro.
Solar Optimum’s Rainier De Ocampo said companies like his have seen a huge influx in customers as the deadline approaches.
He said his company has been alright but others have struggled to keep up.
"In the last year and a half, supply chain issues with panels across the world. There’s been supply chain issues with panels across the world. A lot of companies, installers, have been scrambling to get product," said De Ocampo.
He said we’re getting down to the wire, but any application submitted before April 15 that is then approved will fall under NEM 2.0
“There is possibility. There’s a lot of companies out there that [have] to say that we can not guarantee NEM 2.0, no one can promise that, that’s just the utility, but there have been companies that have guaranteed the submission of the application," said De Ocampo.
Del Chiaro said Californians shouldn’t rush last minute though.
“Solar is still a good investment so don’t rush. This is a big investment you’re making to your home. Make sure you’re working with a really qualified contractor. Make sure you’re carefully reviewing all paperwork," she said.
And even though the incentives will be different, going solar can still be a beneficial investment.
“Regardless of which net metering program you fall under, you’re investing in sun power which is going to be our most abundant natural resource in California and you're investing in a technology in which once you make that original investment, its price is locked in for you," said Del Chiaro.
The CSSA has many online tools that can help you find contractors and fill out an interconnection application if you want to go solar. Click here to learn more.
