Additional $630 Million in California State Funding Set Aside to Support Residential Low-Income Solar Plus Storage Adopters
San Diego, CA, January 26, 2023 – NeoVolta Inc. (NASDAQ: NEOV) – NeoVolta Inc., manufacturer of Smart Energy Storage Solutions, announced today that it expects California’s recently updated Net Energy Metering (NEM) program to drive increased demand for energy storage systems.
On December 15, 2022, the California Public Utilities Commission (CPUC) issued a decision to update the NEM tariff to promote consumer adoption of solar and battery storage. The program will go into effect on April 13, 2023. According to the CPUC, the move was designed to financially incentivize Californians to install both battery and solar systems.
The CPUC stated that the current NEM 2.0 program was not aligned with California’s grid reliability and climate goals, noting that the increased use of electricity between 4 and 9 p.m. causes dependence on fossil fuel gas plants to meet the demand. With the battery storage incentive, the CPUC hopes to see an increased adoption of residential energy storage that will better support the needs of the grid, with customers saving self-generated solar energy for use in the evening hours.
An additional $630 million in state funding has been set aside by the California State Legislature for residential low-income solar plus battery storage adopters. The decision bolsters federal incentives provided by the Inflation Reduction Act for solar and battery storage.
It’s important to note that NEM 3.0 is not retroactive. Rooftop solar systems installed under NEM 2.0 will remain under that policy for a 20-year grandfathering period. This means existing rooftop solar owners who add a battery after the April 13 deadline will not be subject to NEM 3.0.
“We expect that NEM 3.0 will make Californians more aware of their energy consumption, encouraging them to conserve energy and pair rooftop solar systems with battery storage,” said NeoVolta CEO Brent Willson. “Californians who adopt this strategy will dramatically reduce their electrical bills while increasing their energy resiliency during periods of prolonged blackouts, fires, and flooding.”
California’s vast solar plus storage market has a dramatic impact on the grid. California has about 12 GW of distributed solar generation already installed, equal to nearly 25% of peak demand statewide. California also has more than 80,000 customer-owned batteries connected to the grid, with a storage potential of 900 MW, according to a September 2022 study by the California Solar & Storage Association.