{"id":11178,"date":"2023-08-01T16:47:24","date_gmt":"2023-08-01T16:47:24","guid":{"rendered":"https:\/\/www.solar.com\/learn\/?p=11178"},"modified":"2023-08-16T15:58:45","modified_gmt":"2023-08-16T15:58:45","slug":"new-nem-3-0-savings-calculations-show-path-to-maximum-bill-reduction","status":"publish","type":"post","link":"https:\/\/www.solar.com\/learn\/new-nem-3-0-savings-calculations-show-path-to-maximum-bill-reduction\/","title":{"rendered":"Electrum\u2019s New NEM 3.0 Savings Calculations Show Path to Maximum Bill Reduction in California"},"content":{"rendered":"

In a breakthrough for California\u2019s residential solar market, Electrum is now offering the industry\u2019s most accurate NEM 3.0 savings calculations and, in doing so, illuminating a path for homeowners to use solar and battery storage to achieve the minimum monthly bill payments enjoyed under NEM 2.0.<\/p>\n

Before NEM 3.0 solar billing<\/a> took effect in April 2023, a solar system designed to produce 100% of a homeowner’s average electricity consumption could also be expected to offset ~100% of the homeowner’s electricity bill (aside from certain non-bypassable charges). But given the extremely low export rates of NEM 3.0, a solar-only system designed to produce 100% of a homeowner\u2019s electricity usage only provides roughly 55% bill offset. This potentially leaves homeowners with solar payments and <\/em>leftover utility bill payments to make each month.<\/p>\n

Electrum\u2019s calculations for two new battery discharge modes show a path 70-90% bill offset and a payback period between 5-7 years for solar and battery systems purchased with cash.<\/strong><\/p>\n

Discover your path to maximum NEM 3.0 savings. Start here.<\/a><\/p>\n

Battery discharge modes: The key to maximum savings<\/h2>\n

The defining feature of NEM 3.0 solar billing is that solar export rates are ~75% lower than they were under NEM 2.0. Instead of earning retail value for the excess electricity their solar systems push onto the grid, solar owners typically earn somewhere around 4-5 cents per kilowatt-hour.<\/p>\n

So, instead of exporting solar electricity to the grid for little-to-no value, it\u2019s much more valuable to store and use it onsite to avoid drawing electricity from the grid \u2013 especially during peak pricing.<\/p>\n

But the question is: When are the best times to charge, store, and discharge batteries under NEM 3.0?<\/p>\n

With 576 different export rates that change by the hour, day, month, and year, the calculations required to answer this question are mind-boggling. Electrum’s tech team dug in, crunched the numbers, and built the only platform where homeowners can get a clear and accurate picture of their potential savings with three different battery discharging modes and compare multiple binding quotes all in one place.<\/strong><\/p>\n

The old calculation: Time-of-Use (TOU) mode<\/h3>\n

Electrum\u2019s first, and most conservative, iteration of battery calculations was based on charging the battery with excess solar production and discharging it only during peak time-of-use hours. The idea is to avoid pulling electricity from the grid when it\u2019s most expensive (summer evenings).<\/p>\n

Under this discharge mode, a homeowner with an 8 kW system producing 9,500 kWh per year with a Tesla Powerwall 2 could expect to save $624 per year in avoided utility costs.<\/p>\n

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The new calculations: Surplus and Optimized modes<\/h3>\n

Electrum\u2019s calculations for two new battery discharge schemes show substantially greater bill reductions and savings than the time-of-use mode.<\/p>\n

In the Surplus scheme<\/strong>, the battery is charged with excess solar production and discharged anytime<\/em> household electricity usage is greater than the solar production. The big difference is that the TOU scheme is limited to discharge only during TOU hours<\/em>. In Surplus mode, the battery can discharge at any time and further reduce importing and exporting from the grid.<\/p>\n

Under the Surplus scheme, a homeowner with an 8 kW system producing 9,500 kWh per year with a Tesla Powerwall 2 could expect to save $1,103 per year in avoided utility costs \u2013 $32 per month more than the TOU scheme.<\/p>\n

In the Optimized scheme<\/strong>, the battery is charged with excess solar production, but the battery uses a predictive model to discharge at the optimal times to prioritize savings. In other words, the battery learns the homeowner\u2019s consumption habits and optimizes its charging\/discharging schedule accordingly.<\/p>\n

Using this mode, homeowners can take advantage of peak export windows in September, when utilities will pay several dollars <\/em>per kWh of electricity exported onto the grid.<\/p>\n

Under the Optimized scheme, a homeowner with an 8 kW system producing 9,500 kWh per year with a Tesla Powerwall 2 could expect to save $1,368 per year in avoided utility costs. That\u2019s $62 more per month than the TOU scheme!<\/p>\n

Optimized mode presents a real opportunity for homeowners to achieve 100% electricity bill offset and sets them up for Virtual Power Plant (VPP) programs forming in California.<\/p>\n

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Why are the new calculations a big deal?<\/h2>\n

For homeowners, Electrum\u2019s new battery discharge calculations revive the once-lost hope of achieving:<\/p>\n