WEBINAR: What Will NEM-3 Mean for Commercial Solar + Storage Projects in California

by Tracy Fosterling on Oct 13, 2021

California net metering


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The looming NEM-3 decision has the potential to dramatically reshape the economics of solar + storage projects in California. The investor-owned utilities (IOUs) have proposed radical changes that would severely erode the value of customer-sited solar. While the end outcome on NEM-3 is yet to be finalized, we now have a strong indication of where the value of exported energy may land as a result of the CPUC’s recent decision on the Avoided Cost Calculator (ACC). The ACC measures the cost-effectiveness of distributed energy resources and will be used to determine the value of rooftop solar. 

In this webinar, we review the major elements of the IOU’s NEM-3 proposals, including (1) the reduced exports values as determined by the ACC, (2) Grid Benefits Charge (GBC) which seeks to levy a fixed charge based on solar system size, and (3) instantaneous time-of-use (TOU) netting and monthly true-ups. We will quantify the impact of these changes on C&I PV+ESS projects, and show how NEM-2 vs. NEM-3 project economics compare. With the final NEM-3 decision expected in the next 6 months, and implementation scheduled to begin in less than a year, now is the time for C&I developers to get fully educated on what it all means.

To supportCALSSA's work to save Net Metering, we invite you to become a member byfilling out the application here and you can also donate directly to theNEM Defense Fund here. If you have questions about CALSSA membership, please contact their Membership Director Carter Lavin atCarter@CALSSA.org or by calling (916) 228-4567.



  1. How commercial projects in California qualify for NEM-2 grandfathering (4:28)
  2. NEM-3 Glidepath Proposals (6:38)
  3. The “Reform Tariff” – the IOUs’ NEM-3 proposal  (9:53)
  4. NEM-3 could include significant solar fees – a look at the proposed “Grid Benefits Charge” (11:00)
  5. How to use California’s Avoided Cost Calculator (ACC) (12:20)
  6. 2022 ACC export values for PG&E, SDG&E, and SCE (14:13)
  7. Payback periods for solar under NEM-3 (22:48)
  8. When will NEM-3 be implemented? (23:25)
  9. Defining imports, exports, and NBCs at the rate level in ETB Developer (29:38)
  10. How to model NEM-3 in ETB Developer (32:29)
  11. NEM-2 vs NEM-3 project economics (37:37)
  12. Energy storage (ESS) in a NEM-3 world (41:58)
  13. The net effect NEM-3 could have on C&I projects (48:51)

Watch the entire webinar below: 

Access the webinar slide deckhere.

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