NEM 3.0 and Solar in West Covina, California: What Changed?

What Is NEM 3.0 and How Does It Affect West Covina?

California's Net Energy Metering 3.0 (NEM 3.0) took effect April 15, 2023 for all new solar installations under Southern California Edison. It replaced NEM 2.0, which paid near-retail rates for every kWh exported to the grid. Under NEM 3.0, export credits dropped to roughly ~$0.08/kWh (significantly lower than NEM 2.0).

Why Solar Still Makes Sense in West Covina Under NEM 3.0

Even with lower export credits, West Covina homeowners on Southern California Edison can still save $2,412/year because:

• ✓Self-consumption savings are huge: Every kWh you use directly from your panels avoids buying from Southern California Edison at 42.0¢/kWh — that's the Tier 2 rate where most West Covina homes operate.
• ✓Battery storage shifts the math: A home battery (e.g., Tesla Powerwall, Enphase IQ) stores excess midday solar for evening use — when you would otherwise buy from the grid at peak rates.
• ✓Rate protection still applies: Southern California Edison rates have risen 71% (2014-2024). Solar production locks in a large portion of your usage at zero cost per kWh, regardless of future rate changes.
• ✓Size for your usage, not for export: Under NEM 3.0, the optimal strategy is a system sized to cover your daytime load — not to maximize export. Your installer should right-size based on your 12-month usage history.

NEM 3.0 Strategy for West Covina Homeowners