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NEM 2 – How it affects NEM 1 residential solar customers

For interconnected solar systems within PG&E territory, NEM 1 reached its cap on December 15. The successor program, NEM 2, launched today. Under the new interconnection agreement, customers interconnecting new solar systems are now required to be on time-of-use rate plans and pay some extra taxes and fees.

Customers interconnected on December 15, 2016 or earlier will remain on NEM 1. However, there are some provisions NEM 1 customers should be aware of:

How long may I keep my NEM 1 agreement?

Your NEM 1 agreements lasts 20 years from the date of interconnection. If your solar was interconnected on June 5, 2015, then you may remain on NEM 1 until 2035.

May I expand my existing solar system and keep NEM 1?

You may keep NEM 1 if you expand your system by either up to 10% its generating capacity or 1 kilowatt (about 3 panels), whichever is greater. If you want to expand beyond this, there are 2 options:

  • Move the entire system to NEM 2.
  • Install a second meter for the expanded system. The current system will remain on NEM 1, while the new system will be on NEM 2. There will be extra charges for installing the second meter.

If I am currently on NEM 1 and switch to NEM 2, does my 20 year agreement reset?

No. Let’s say your solar system was installed in 2015. You expand your system in 2017 and move it entirely to NEM 2. Your agreement will still expire in 2035, not 2037.

Exception: If you opt to have your expanded system metered separately, the original system will still expire in 2035 and the expansion will expire in 2037.

I am moving to another home within PG&E territory and would like solar there. May I transfer my NEM 1 agreement to my new home?

No. PG&E Net Metering agreements are tied to the home, not to any person. Your new solar system will be under the NEM 2 agreement.

I am selling my home with solar and have PG&E NEM 1. Will it transfer to the new homeowner?

Yes. Since Net Metering is tied to the home, it transfers to the new owner. So if the solar system was interconnected in 2015, the NEM 1 agreement will still expire on 2035, no matter how many times the house changes owners.

What happens after 20 years?

20 years is a long way off. There is no way of knowing what PG&E’s will do then. One thing for certain though though: you will have more than paid for your solar investment.

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