Fixed Utility Rates & Net Energy Metering 3.0

Fixed Utility Rates & Net Energy Metering 3.0


The California Public Utilities Commission (CPUC) regulates public utilities in California, ensuring fair rates and consumer protection. The SB 100 mandates that all electricity sold in California must come from renewable energy and zero-carbon resources by 2045. The AB 205 implements energy-related items of the 2022 Budget Act.

Net Energy Metering (NEM) is a billing mechanism that encourages private investment in renewable energy resources in California. NEM 1.0 and NEM 2.0 provided full retail rate bill credit for power generated back to the system, but the CPUC found that this negatively impacted non-participant ratepayers. NEM 3.0 will earn around 75% less for excess electricity pushed onto the grid, with residential solar export rates based on an “Avoided Cost Calculator,” closer to wholesale rates for electricity.

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