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Dec 29 2022
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How to Grandfather Your Solar System into NEM 2.0

By Solar Panel Costs by State No Comments

Update: NEM 3.0 took effect on April 15, 2023. Solar systems with interconnection applications submitted on or after this date will be placed under NEM 3.0 solar billing. Solar systems with interconnection applications submitted on or before April 14, 2023 can still be grandfathered into NEM 2.0, even if the application is reviewed and approved by the utility after the April 14 submission deadline.

With NEM 3.0 approved and scheduled to take effect in mid-April, customers of California’s investor-owned utilities have a brief window to grandfather a solar system into the much more favorable NEM 2.0.

Going solar under NEM 2.0 means a shorter payback period and greater monthly savings, adding up to tens of thousands of dollars over the life of a solar system.

So we teamed up with Nathan Perry, a cleantech educator and NEM policy expert, to provide a roadmap for Californians to go solar under NEM 2.0.

But let’s start with the big question: Why does grandfathering your solar system into NEM 2.0 matter?

Related reading: Is Solar Still Worth It With NEM 3.0 in California? 5 Ways To Maximize Your Savings

Solar savings under NEM 2.0 vs NEM 3.0

Moving quickly to get a solar system grandfathered into NEM 2.0 may seem like pain, but there are obvious fruits to your labor.

Under NEM 3.0, compensation for excess solar energy exported onto the grid will be on average 75% less than under NEM 2.0. Over the 25-year warrantied life of a solar system, that adds up to a major reduction in energy cost savings.

Here’s how that looks for a cash purchase for an average 7.6 kW system:

NEM 3.0 vs grandfather into NEM 2.0

So, if over $40,000 in electricity cost savings sounds worth fighting for, let’s look at how to grandfather your system into NEM 2.0.

Related reading: 5 Things To Know in the Final Weeks of NEM 2.0

How to grandfather a solar system into NEM 2.0

There are two steps required to grandfather a solar system into NEM 2.0.

  1. Submit a solar interconnection application to your utility before April 13, 2023
  2. Install and receive permission to operate (PTO) within three years of submitting your interconnection application

Now, unless you speak solar-ese, you’re probably wondering “What is an interconnection application and how do I submit one.”

We’re so glad you asked! Let’s start with a quick crash course on interconnection applications.

Quick Note: NEM 3.0 is not retroactive. Existing solar systems will remain under their current net metering policy for 20 years from their interconnection date.

What is an interconnection application?

According to Perry, an interconnection application is a series of documents that give your utility company information about your solar system in order to turn it on safely.

According to the final NEM 3.0 proposal, a valid solar interconnection application includes:

  • Complete application
  • Signed contract
  • Single-line diagram
  • CSLB Disclosure Document
  • Signed consumer protection guide
  • Oversizing attestations (if applicable)

While this list of items reads like gibberish, these are all standard documents that any reputable solar installer will be familiar with.

How do I submit an interconnection application?

Ready for the good news? Your solar company will fill out this application and submit it on your behalf.

In terms of grandfathering a system into NEM 2.0, the more important question is when in the solar process can you submit an interconnection application.

“Grandfathering is based on the submission date of the interconnection application, which can be done before the system is even installed,” Perry said. “This step can be completed anytime after the site survey when the design is finalized.”

Typically, solar installers submit the interconnection application after the system has been installed. However, in response to NEM 3.0, many – but not all – companies are changing their operations process to submit as early as possible.

Since solar installations typically take 3-5 months to line up, it’s important to find an installer that has changed their process to submit interconnection applications early.

Get the solar process started today with multiple quotes from vetted network of installers

5 tips for grandfathering a solar system into NEM 2.0

There is little time to waste if you’re trying to grandfather a solar system into NEM 2.0, so we rounded up some tips for getting your solar interconnection application submitted before the April 13 deadline.

Tip #1: Get solar quotes ASAP

According to Perry, the first and most important step is to get quotes from reputable solar installers – which you can do right here on solar.com.

Identifying, vetting, and gathering quotes with multiple solar companies takes time, but we’re here to quickly do that legwork for you.

In our guided solar process, you team up with an Energy Advisor to quickly generate dozens of quotes from vetted local installers. We’ll present you with the three best and advocate for your project throughout the process.

Every installer in our network is rigorously vetted for certifications, experience, sound financials, and excellent customer experience. In fact, we accept fewer than 30% of the companies that apply.

Connect with an Energy Advisor to start your solar project.

Tip #2: Identify installers with NEM 2.0 grandfathering processes

Once you’ve generated quotes, Perry said it’s important to narrow the list down to installers with this crucial question:

Is your company prepared to submit the documents needed for NEM 2 grandfathering early in the process?

This is important because the interconnection application step is usually done after the installation, which can take 3-5 months. But the recent NEM 3 ruling changed this process. Instead of waiting until after installation to submit the required documents for grandfathering, many companies are changing their operations process to submit as early as possible.

“Do not assume that every solar company will be adapting to this grandfathering process,” Perry said. “I’ve already seen solar company emails to customers explaining that you must be installed to be grandfathered.”

NEM 2.0 grandfather process

Tip #3: Double-check the information on your contract

Once you’ve selected an installer and designed a system, the next thing you can do is make sure the information in your contract is 100% accurate. The contract is a crucial part of the interconnection agreement and one of the only things you can control.

“Double-check that your name is spelled and formatted identically to how your utility has it on your electric bill,” Perry said. “Everything else on the interconnection application is your installer’s responsibility.”

According to the final NEM 3.0 proposal, grandfathering into NEM 2.0 requires submitting an interconnection application “free of major deficiencies” which is, frankly, a meaningless term. The CPUC and investor-owned utilities have not clarified what constitutes a “major deficiency.”

So, it’s important to double-check your contract and submit your application as early as possible.

“The earlier you start the process, the more time there is to catch deficiencies and get them corrected before the April 13th deadline,” Perry said.

Tip #4: Request and save emails from your utility

Grandfathering into NEM 2.0 is based on the submission date of the required documents, so it’s crucial to keep a record of when your interconnection application was submitted.

Your utility will send your solar company with one of three phrases to confirm submission:

  • “Sent for review” (PG&E)
  • “Deemed valid” (SCE)
  • “Pending AHJ” (SDG&E)

“I would request my solar company to forward me the email confirming receipt of the documents as proof of grandfathering,” Perry said.

Tip #5: Be quick to pivot

Perry’s final tip is a simple one: If your installer can’t grandfather your system into NEM 2.0, get a new one!

“There is no time to be loyal to an installer being slow or difficult to work with when time is short and you need to be grandfathered to lock in your solar benefits,” Perry said. “If your installer is not communicating about the hold-up, I would send them an email saying you are canceling your contract, then move on to another company.”

Beginning in January, you should be able to get emailed proof that you have been grandfathered within 2-3 weeks of signing the contract, Perry added.

The bottom line

With NEM 3.0 approved, customers of California’s investor-owned utilities – PG&E, SCE, and SDG&E – have a brief window to grandfather a solar system under the much more favorable NEM 2.0.

In order to remain under NEM 2.0,  you must submit a valid solar interconnection application before NEM 3.0 takes effect on April 13, 2023.

The keys to grandfathering a solar system into NEM 2.0 are:

  • Get solar quotes from reputable installers as soon as possible
  • Choose an installer that has adapted their process to submit interconnection applications as early as possible
  • Match the name on your solar contract exactly how it shows up on your utility electricity bill
  • Request and save the confirmation emails the utility sends to your installer

There is no time to waste. Get started with multiple solar quotes today!

 

Dec 22 2022
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Is Solar Energy Renewable?

By The Pros and Cons of Rooftop Solar in 2026, 5 Ways That Solar Energy Benefits the Environment No Comments

As climate change rears its head, the world is in desperate need of clean and renewable energy sources. Photovoltaic (PV) solar is now the fastest growing energy source, which is good news for people that like cheap, clean, and renewable energy.

In this article, we’ll explore how solar energy works, what makes it renewable, and how it benefits the environment.

Let’s dive in with a quick recap of how solar energy works.

How does solar energy work?

Solar energy is generated by capturing the sun’s energy and turning it into electricity for your home or business. The process can be broken down into five basic steps.

Five steps of solar energy

  1. Solar panels made up of photovoltaic (PV) cells are installed on your roof or a separate structure, such as an accessory dwelling unit (ADU) or ground-mounted solar panel array
  2. When sunlight hits the PV cells, it knocks electrons loose from the atoms they are bound to, creating a flow of electricity
  3. The solar panels are connected to an inverter, which converts the direct current (DC) electricity produced by the panels alternating current (AC) electricity — the type of electricity that is used in your home
  4. The AC electricity is then sent to your home, where it powers your lights, appliances, and other electrical devices
  5. Any excess solar energy that is generated is stored in a battery or pushed onto the grid, where it can be used by nearby electrical systems

Obviously, solar energy requires sunshine and only works during the day. Many home solar systems are grid-connected and use net metering to earn credit for excess electricity. Others use battery storage to bank energy for nights and power outages.

how does solar power work: photovoltaic effect with labels

Is solar energy renewable?

Yes, solar energy is a renewable energy source. Renewable energy sources are those that can be replenished naturally and are not depleted when used. They include:

  • Solar
  • Wind
  • Water (hydroelectric and tidal)
  • Geothermal

The sun is an abundant and virtually limitless source of energy, and as long as the sun continues to shine, we will be able to generate solar energy.

In fact, the National Oceanic and Atmospheric Administration (NOAA) found that “solar energy is the most abundant energy resource on earth — 173,000 terawatts of solar energy strikes the Earth continuously. That’s more than 10,000 times the world’s total energy use.”

There’s more than enough solar energy to go around – we just need to catch, store, and distribute it!

In contrast, nonrenewable energy sources are finite, meaning they can be depleted if we continue to use them at the current rate. These include fossil fuels such as coal, oil, and natural gas, which are formed over millions of years from the remains of plants and animals.

Related reading: The Pros and Cons of Going Solar

What makes solar the primary source for renewable energy?

Solar is sometimes referred to as the primary renewable energy source because it is the most abundant, cost effective, and widely available source of renewable energy on the planet.

In addition to being renewable and widely available, solar energy is also a clean and environmentally-friendly source of energy. It does not produce any emissions when generating electricity, and the emission generated to manufacture a solar panel are typically offset within 2-3 years.

It’s no surprise, then, that solar capacity is growing faster than any other energy source – renewable or not. Utility-scale solar accounted for 35% of all energy generation installed from January to September 2022, followed by wind and natural gas.

And solar is just getting started.

From October 2023-September 2025, there are nearly 72 GW of “high probability additions” of solar lined up, which would make up 65% of all new generation capacity.

Likely energy generation additions for Oct. 2023 to Sept. 2025

Energy source High probability additions (GW) Scheduled retirements (GW)
Solar 71.6 0
Wind 18.3 0.14
Natural gas 17.1 17.5
Nuclear 2.2 2.3

Data: US Federal Energy Regulatory Commission (FERC)

How does solar energy benefit the environment?

Solar energy is both a renewable and sustainable energy source because it meets the needs of the present without compromising the ability of future generations to meet their own needs.

There are several ways that solar energy benefits the environment.

Solar reduce carbon emissions

Primarily, using renewable solar energy can benefit the environment by reducing our reliance on fossil fuels, which contribute to climate change. By using solar energy, we can reduce the amount of planet-warming gasses in the atmosphere and help to preserve the planet for future generations.

is solar energy renewable -- chart of cleanest sources of energy

Solar energy conserves water

Solar energy not only reduces carbon emissions, it also conserves water.

All sources of electricity generation require water. However, whereas water use is continuous for fossil fuels and nuclear electricity gneeration, solar panels only need water during manufacturing. Once installed, solar panels require zero water. That leaves 25+ years of water-free energy production.

A 2022 study by professors Avner Vengosh and Erika Weinthal at Duke University’s Nicholas School of Environment found that the water savings potential of solar is enormous.

“Converting to solar in homes reduces the use of the grid electricity and therefore also the volume of water. In some states, like in the southwestern U.S., the individual household water saving can reach up to 1000 percent upon installing rooftop solar.”

Solar panels can also be used to shade canals and bodies of water to reduce evaporation. In fact, covering California’s 4,000 miles of canals with solar panels would save more than 65 billion gallons of water per year.

Rooftop solar preserves land

In addition to emissions and water, solar energy can also reduce virgin land use. Rooftop solar, in particular, requires zero extra land and turns a surface that absorbs heat into one that generates clean electricity.

Solar panels can also be used in conjunction with agricultural and native landscapes in a system known as “agrivoltaics.”

Pairing solar panels with agriculture has the potential to:

  • Enhance crop yields and native plant growth
  • Shelter livestock and wildlife
  • Reduce water loss to evaporation
  • Provide a secondary source of income for farmers and ranchers
  • Preserve wildlands

Agrivoltaics is one of many examples of the versatility of solar energy.

Anyone can produce renewable solar energy

Perhaps the coolest thing about renewable solar energy is that the general public can produce it!

Rooftop solar is not only incredibly beneficial to the environment – it’s good for your pocketbook. Going solar can lower your energy costs and provide a predictable monthly payment. Over the 25-year warrantied life of a solar system, this can add up to tens of thousands of dollars in energy cost savings.

As the primary renewable energy, rooftop solar is truly a win-win. Connect with an Energy Advisor to compare multiple quotes from vetted solar installers.