2024 NEM 3 Updates: Turning Challenges into Opportunities for Installers

California’s NEM 3 continues to throw curveballs at installers. Still, while 2024 NEM 3 updates introduced complexities, they have also opened the door to new opportunities to provide even more value to your clients and garner more customer loyalty. Selling solar used to be as easy as showing prospective customers what they would save and the ROI they would realize, and they would sign the dotted line. But this is no longer the case. 

The key to evolving alongside these new regulations is broadening what you offer. Solar storage batteries are no longer a luxury; they are a necessity. Solar batteries provide your business with a new source of revenue and empower you to close more sales. With NeoVolta solar batteries, your customers maximize the value they can get from their solar installations, boosting your profits. Here’s what to know about NEM 3 changes. 

What Are 2024 NEM 3 Updates Installers Need to Know?

California’s NEM 3 continues to impact installers and homeowners alike. For installers, it’s crucial to understand how to understand 2024 NEM 3 updates and what you can do to offset regulation changes. By staying informed on NEM 3 updates and effectively communicating them to clients, you will become a trusted advisor who can guide them through this new landscape, fostering loyalty to your installer business. Here is what to know about NEM 3 changes. 

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Energy Credit Calculations

One of the top 2024 NEM 3 updates that installers need to be aware of is how energy credits are calculated now. This change will have a significant impact.

Under NEM 3.0, credits are based on the customer’s unique “baseline” electricity usage instead of the formerly used general tiered rate structure. As a result, the amount of credits a customer can earn depends on their energy usage.

For installers, this adds some complications in that there is no longer a general rate that is the same for everyone. Still, the intent behind this change is to make the program more fair, as customers who use more electricity can earn more credits. Conversely, those who use less will earn fewer credits.

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Credit Valuation

Another important change to consider under NEM 3 is that energy credits will be valued at the utility’s avoided cost and not the retail late. 

The avoided cost is what the utility company would pay to generate or purchase the same amount of energy your customers are sending back to the grid. This cost can be lower than the retail rate, which is the rate that they typically pay for electricity.

This change aims to ensure the costs and benefits of net metering are spread more equally among all utility customers. 

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Excess Energy Credit Expiration

Another significant 2024 NEM 3 change is your customers can no longer roll over excess credits indefinitely. NEM 3 has implemented a “use it or lose it model,” meaning they will be credited at the end of the annual period, and if they do not use them, they expire. 

In other words, if customers don’t use their credits within a year, they lose them. This update aims to provide more certainty and stability for solar customers and utilities by preventing your customers from accumulating large amounts of credits they never use. 

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What Can You Do to Maximize Your Profits While Navigating 2024 NEM 3 Updates?

Selling premier solar batteries is essential for you and your clients in the evolving world of solar installations. For clients, calculating what they stand to gain from solar is more than just exceedingly complicated. Rebates and tax breaks are no longer a big enough incentive to justify investing in solar. 

Before, excess solar energy produced during the day could be credited against your customer’s electricity bill at a 1:1 ratio. Now, this rate will decline, incentivizing storing excess solar power for later use with batteries. 

For your installer business, you can package your solar panel installations with battery storage systems, allowing your clients to store excess solar energy during the day and use it at night during peak electricity rate hours. 

NeoVolta installer-friendly solar storage batteries empower installers like you to provide clients with a comprehensive, affordable, and durable solution that maximizes their energy independence, savings, and the overall impact of NEM 3’s crediting changes. 

Our products allow your customers to store excess solar energy during peak production hours and use it later during peak rate hours, maximizing the value of their investment. 

You will close higher-value deals faster with new customers and help current customers adapt to these changes. And the best part? You will ensure customer satisfaction by presenting them with a comprehensive solution! 

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Maximize Your Profits By Partnering with a Solar Battery Distributor that Knows 2024 NEM 3 Updates

It’s time for installers like you to embrace the future with NeoVolta. By incorporating NeoVolta’s solar storage batteries into your offerings, you can equip yourself with the knowledge and tools to address all customer concerns as you help them navigate the new landscape created by 2024 NEM 3 updates with confidence. You will also be able to offer high-value solar packages with batteries to increase project value and provide a solution that directly combats clients your customers are experiencing under these new regulations, substantially boosting your profitability.

The NEM 3 landscape may seem complex, but partnering with NeoVolta will turn these complexities into a golden opportunity. Do you want to deliver exceptional value to customers, be a leader in the evolving solar market, and boost profits? Contact us. 

For more information, visit: NeoVolta.com, email us: [email protected], or call us: 858-239-2029

Forward-Looking Statements

Certain statements in this news release constitute forward-looking information within the meaning of applicable securities laws. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “expects,” “believes,” “anticipates,” “budget,“ scheduled,” “estimates,” “forecasts,” “intends,” “plans,” and variations of such words and phrases, or by statements that certain actions, events or results “may,” “will,” “could,” “would,” or “might,” “be taken,” “occur,” or “be achieved.” Forward-looking statements are neither historical facts nor assurances of future performance. Forward-looking information contained in this news release is based on certain assumptions regarding, among other things, expected growth, results of operations, performance, industry trends and growth opportunities. While management considers these assumptions to be reasonable, based on information available, they may prove to be incorrect. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements.

About NeoVolta

NeoVolta designs, develops, and manufactures advanced energy storage systems for both residential and industrial use. Its storage solutions are engineered with Lithium-Iron Phosphate (LiFe(PO4)) battery chemistry, which is clean, nontoxic, and nonflammable. The residential-focused NeoVolta NV14 is equipped with a solar rechargeable 14.4 kWh battery system, a 7,680-Watt inverter, and a web-based energy management system with 24/7 monitoring. The system’s 6,000-cycle battery life, one of the longest on the market, translates to 16.5 years of useful life, based on a full charge, and discharge each day. The NV14 has passed the product safety standards set forth by Underwriters Laboratories (UL) for battery energy storage safety testing.

For more information visit: NeoVolta.com email us: [email protected] or call us: 858-239-2029

 

Forward-Looking Statements

Certain statements in this news release constitute forward-looking information within the meaning of applicable securities laws. Generally, forward-looking information can be identified by the use of forward-looking terminology such as “expects,” “believes,” “anticipates,” “budget,“ scheduled,” “estimates,” “forecasts,” “intends,” “plans,” and variations of such words and phrases, or by statements that certain actions, events or results “may,” “will,” “could,” “would,” or “might,” “be taken,” “occur,” or “be achieved.” Forward-looking statements are neither historical facts nor assurances of future performance. Forward-looking information contained in this news release is based on certain assumptions regarding, among other things, expected growth, results of operations, performance, industry trends and growth opportunities. While management considers these assumptions to be reasonable, based on information available, they may prove to be incorrect. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions that could cause actual results or events to differ materially from those expressed or implied by the forward-looking statements.