Does NEM 2.0 Benefit Consumers?

After January 1st. California is switching from solar plan NEM 1.0 to NEM 2.0.

For some - it will be the first (and possibly only) time solar makes financial sense.

Things are changing, and in order to understand a NEM 2.0, a plan in which energy costs change organically based on supply and demand, it’s important to know how Time of Use (TOU) works.

Time of Use TOU

On any solar plan, a homeowner integrates with ‘the grid,’ and their solar panels contribute to a big pool of energy that’s shared throughout Los Angeles. This plan is split into two time-zones, two definitions.

9am - 4pm: are peak hours for solar GENERATION, when solar panels are making the most energy - which means the value of a kWH here is lower because everyone has enough energy.

4pm - 7pm: are peak hours for solar USAGE, which mean the value of a kWH is higher here because the demand for energy is high while the sun is down.

TOU has made its appearance not just in solar, but electric plans. In this SoCal study it was shown that the average homeowner without changing their energy habits, would save 2% on their energy bill.

NEM 2.0 Has Opened the Floodgates

But what’s 2.3% compared to outright eliminating an energy bill with solar? A return on investment within four years?

Contact Novel Remodeling to find out which solar plan fits your lifestyle, because after January 1st - what there won’t be is a choice.