NEM 2.0 vs NEM 3.0

Solar Savings are Greater with NEM 2 Eligible Homes (Net Energy Metering)

When you are shopping for a new home, it’s important to know the difference between NEM 2 and NEM 3 rated solar systems, because not all solar and the extra energy it produces, is equal since California Public Utility Commissions approved Net Energy Metering 3 tariff.

What is NEM?
Net Energy Metering (NEM) is a billing mechanism that credits solar energy homeowners for their electricity added to the grid. The excess electricity goes back to the power grid at full retail rates to NEM customers who generate more electricity than they use over a 12-month billing cycle. As of April 2023, all new solar systems receive a NEM 3 rating which cuts your solar credits from the utility company by 75% or more versus the grandfathered NEM 2 systems. That’s a big loss for homeowners.

What does this mean?
San Joaquin Valley Homes saw this change coming and their planning and development team pre-filed hundreds of their new home sites for NEM 2 ratings before the NEW 3 change deadline. This will save homeowners more money on their net solar energy from the utility company. “Planning for the mandatory NEM rating change was important to our team. It means that our homeowners receive a greater value for their net solar energy”, states Randy Merrill, San Joaquin Valley Homes, Co-Founder. “We are proud that when families purchase one of our new homes, they always receive quality workmanship and fantastic locations. Now, where ever we could prefile, homebuyers will also receive a NEM 2 solar rating.”

San Joaquin Valley Homes has NEM 2 homesites in 12 different neighborhoods, but they won’t last long!