Introduction

Net energy metering (NEM) is one of the most beneficial policies for homeowners looking to reduce electricity bills with solar energy. It allows residential solar customers to earn credits for excess electricity sent back to the grid. However, evolving net metering policies are altering the benefits of this program, making it crucial to stay informed and act swiftly.

How Does Net Metering Work?

Under net metering, homeowners with a home solar system generate electricity through rooftop solar panels. Any surplus energy is sent to the grid in exchange for credits, which can be used to offset energy costs when solar production is low, such as during nighttime.

With policies like NEM 3.0, some states are modifying how excess energy is valued, making it vital for homeowners to consider solar with battery backup to maximize savings.

Why Are Net Metering Policies Changing?

The rapid adoption of residential solar is challenging traditional utility models. As more homeowners install solar, utility companies argue that they face revenue losses, leading them to advocate for policy changes that reduce the value of solar credits. Key changes include:

1. Credit Expiration – Some utilities impose annual expiration dates for excess energy credits.

2. Fixed Charges – Customers must pay minimum fees, regardless of how much solar energy they generate.

3. Devaluation of Solar Exports – Utilities offer lower rates for exported solar energy, reducing overall savings.

For example, California’s NEM 3.0 significantly reduces the value of exported energy unless paired with a battery storage system. Similarly, utilities in Florida and other states are pushing for similar revisions.

How to Maximize Savings Amid Changing Policies

With net metering benefits declining in some areas, homeowners must act strategically:

• Install a Solar System Now – Lock in existing net metering benefits before further policy changes.

• Pair Solar with Battery Backup – Batteries allow homeowners to store excess energy instead of selling it at reduced rates.

• Use a Solar Calculator – A smart solar calculator can help estimate potential savings under new net metering policies.

• Work with a Local Solar Installer – A local solar installer understands state-specific regulations and can provide tailored solutions.

Conclusion

As net billing models replace traditional net metering in some states, homeowners must adapt to maintain solar savings. Investing in solar with battery backup and consulting with a local solar installer can help mitigate the impact of policy shifts. Don’t wait—secure your solar benefits today with SolarSME. Contact us now to explore your best options for going solar!