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In short, in December ‘22, the California Public Utilities Commission (CPUC) approved new regulations called NEM 3.0, which will significantly reduce net metering compensation rates for new California solar customers (by about 75 percent). This rate reduction, which goes into effect on April 14, 2023, will reduce a consumer’s overall solar savings by about 60 percent and extend the average system payback period from 5-6 years to 9-10.
Read EnergySage’s full article on NEM 3.0, or learn more about NEM 3.0 and why going solar now is so important from our friend, sustainability expert Ben Sullins.
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Probably more than 10 and fewer than 40. We know that’s quite a range, but with solar, there’s really no one-size-fits-all solution: the number of panels you should install depends on how much sun hits your property, your energy needs, and the amount of space you have available for the installation. Most people install a system large enough to generate as much of their electricity needs as possible (that’s how you’ll save the most money!)
Need? No – most people who go solar remain connected to the grid, meaning you can pull electricity from the grid when your solar panels aren’t producing enough to meet your needs. However, even though you don’t need one, solar batteries have some pretty great benefits: if you live in an area that experiences frequent power outages, a battery will help keep your solar-powered home running when the grid goes down. Also, if your utility company has demand charges or time-of-use rates, installing a solar battery can help you save money.
Like solar, you can think of the costs as both a gross price and a price per relative capacity. Solar batteries range from $5,000 to $7,000+ and from $400 dollars per kilowatt hour (kWh) to $750/kWh. Note that these prices are only for the battery itself, not for the cost of installation or additional necessary equipment. The installed cost of a battery is closer to $11,000 to $18,000+, and $800/kWh to $1,300/kWh.
Most people can save tens of thousands of dollars on electricity costs over the lifetime of a solar panel system (25+ years). The exact amount you can save depends on many factors, including how much you spend on electricity bills, how much electricity your solar panel system generates, incentives available in your area, and more. The best way to get accurate savings estimates is to compare custom solar quotes on our Marketplace – your quotes will take all these factors and more into account.
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