So, you’ve heard all about the NEM 3.0 solar rate changes that took effect on April 14, 2023 for anyone installing solar after the deadline. But, now what? What’s next for solar homeowners who locked in under NEM 2.0 or for homeowners who didn’t get their solar applications in by the April 14 rate change date?
The simple answer in two words: Energy Storage.
Whether you’re still on the NEM 2.0 rates as a solar homeowner or not, energy storage will further offset your costs by allowing you to use stored energy during times of day when energy rates are highest. If you’re installing solar with the new solar net billing (NEM 3.0) rates, using stored energy will be an even greater offset to your monthly energy costs as the rates you’re earning for your solar production are less. Even if you have no solar, energy storage is a way to mitigate high energy costs by allowing you to take advantage of time-of-use rates, which offer lower rates during off-peak periods and higher rates during peak periods.
Earning less for your solar means that you’ll need to rely more on the solar energy you generate for your own household consumption. This is where energy storage comes in. With a home energy storage system, you can store the excess solar energy you produce during the day and use it during peak periods when electricity prices are higher. Energy storage also reduces reliance on the grid and increases your energy independence.
As a Sierra Club member, perhaps the grid stability benefit of energy storage resonates the most. By offsetting peak demand, energy storage helps to increase the reliability and stability of the grid which reduces the likelihood of building more power plants to meet our increasing energy demands. In summary, energy storage is important with NEM 3.0 because it enables solar homeowners to fully realize the benefits of the solar power they produce, reduces reliance on the grid, and increases the overall stability of our electricity system.
Important takeaways and numerous benefits of home energy storage in the NEM 3.0 world:
1. Maintain the Value of Your Solar & Reduce Energy Costs: Using your stored energy during peak periods leads to significant savings on electricity bills.
2. Ensure Energy Security: Reducing your dependence on the grid provides peace of mind knowing when the lights go off, yours stay on. Plus, you’re contributing to the overall resilience and reliability of the grid by reducing peak demand, stabilizing supply and helping prevent blackouts.
3. Earn Tax Credits & Increased Home Value: When you install an energy storage system, you may be eligible for the 30% Inflation Reduction Act tax credit. In addition, home energy storage systems are becoming more popular as homeowners are becoming environmentally aware and are seeking ways to reduce their energy costs. Now, having a home energy storage system installed can make your home more attractive to prospective buyers and increase its value.
4. Contribute to Environmental Sustainability: Using your stored energy during peak periods reduces demand on the grid. This means you’re reducing your reliance on fossil fuels and lowering your carbon footprint. You are part of the solution by contributing to the reduction of greenhouse gas emissions and you’re helping combat climate change.
Don’t forget and tell your friends, Sierra Club members qualify to receive $500 cash back on the installation of energy storage and Swell Energy will donate up to $750 to Sierra Club Angeles on your behalf. Learn more at: swellenergy.com/sierraclubangeles