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The California Public Utility Commissioner (CPUC) approved the NEM-3 change on 12/15/2022, which will allow SCE to transition to the new net metering program that will reduce the surplus compensation by 75%. 

What is NEM?


Net energy metering (NEM) allows customers to get credit from their utility for electricity they export to the grid. When a solar system produces more energy than the building is using, electricity flows onto the power grid and is consumed by neighboring customers. The utility gives a credit to the generating customer for that energy. At the end of the month, the credit are netted against the cost of electricity that customer draws from the grid when solar is not producing. 

Why you want to get grandfathered into the current NEM-2 program?

The value you get credit for will drop by 75% when NEM-3 is in effect, this will increase the payback period for an average solar photovoltaic system by 2-3 years more to breakeven compare with those system that are commissioned under the NEM-2.

What's the timeline?

  • 12/15/2022 - CPUC final decision is made 

  • 120 days sunset period - all "deemed valid" application submit to SCE during this time will still be qualified for NEM-2

  • 4/14/2023, 11:59pm - deadline to submit application to SCE

What are needed to meet the deadline?

  • A signed installation agreement

  • CA Contractors Licenses Board Solar Energy System Disclosure Document

  • CA Solar Customer Protection Guide

  • e-signature verification document

  • system sizing justification form/oversizing attestation 

  • a complete NEM application

  • a valid single-line diagram 

With Altadena Energy & Solar, we will provide the full package of documents for your e-signature via DocuSign, and guarantee that your application will be submitted in time for the NEM-2 application deadline if we received your project deposit ($1,000) and all signed document before April 3, 2023.

Do I need to have the system built before 4/14/2023 to get grandfathered into NEM-2?

No you don't! All you need is to submit the application with the documents mentioned above, and we don't even need to worry about the solar permit status for the NEM application (SCE does not require solar permit to provide 'deemed valid" status for your NEM application, we do need to provide the permit and final inspection sign of to get Permission to Operate for your system). Once 'deemed valid' status is given for your application, you will have 3 years to complete the installation of system. 

Do I want to size up the system to get it grandfathered into NEM-2?

If budget allows, we highly recommended sizing up your system to get it grandfathered into NEM-2. Future expansion that is over 10% of your existing solar capacity will trigger NEM status change. 

I'm with Pasadena Water & Power, am I affected by NEM-3 change?

No you will not be affected. If you are customer of Pasadena Water & Power (PWP), Los Angeles Department Water & Power (LADWP) and Glendale Water & Power (GWP),  you are with your municipal utility and are not affected by the NEM-3. You should, however, check with your utility and inquiry about if they are making other changes to their net metering program. 


Altadena Energy & Solar appointment schedule is so fully booked now, how can I get an estimate from you sooner?


We work hard to keep up with the demand for in-person site visit for each of our potential project so that we can better understand your energy needs. On site visit also allow us to get enough information so that we can provide you an accurate estimate as much as possible to avoid surprises. However, if you already know exactly what you want, and want us to provide a comparative bid, feel free to email your specific request to and we will do our best to accommodate your request. We will not be your lowest price option, but if you are looking for a reputable solar company that stand behind our quality of work and provide service as promised, we will be a good match for you. 

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