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What is NEM 2.0 Los Angeles?

Solar Finally Makes Financial Sense



NEM 1.0 Benefits

  • Home Businesses
  • Stay at Home Parents
  • Continuous Energy Use Throughout the Day

This is the plan that California currently has in action.

The reason it benefits families who need energy throughout the day is because unlike TOU (Time of Use) the value of a kWH is the same in the morning as it is at night. The price doesn’t change with the demand.

Time of Use Plan (NEM 2.0)

On any solar plan, a homeowner integrates with ‘the grid,’ and their solar panels contribute to a big pool of energy that’s shared throughout Los Angeles. This plan is split into two time-zones, two definitions.

9am - 4pm are peak hours for solar GENERATION, when solar panels are making the most energy - which means the value of a kWH here is lower because everyone has enough energy.

4pm - 7pm are peak hours for solar USAGE, which mean the value of a kWH is higher here because the demand is high with people willing to spend credits to get it.

Now, we can understand NEM 2.0 which uses a TOU plan.

NEM 2.0 Benefits

  • Full-Time Employed
  • Energy Conscious
  • Expected Residents of Over Four Years

NEM 2.0 is also -

  • Interconnection service fee $75 - $150 per installation.
  • Monthly flat fee of $10/month.
  • Standby charge of $27 a month.
  • Value of energy exported to grid reduced 2 - 3 cents per kWh.
  • Inability to transfer credits from high energy production months to low.

These added fees on solar installation may be why the introduction of NEM 2.0 is being protested in Los Angeles because it looks bad on paper - but in practice, this SoCal study shows that even a homeowner on an electric plan saves with TOU, 2.3% to be exact - and that’s without compromising a thing about their lifestyle.

But what’s 2.3% compared to outright eliminating an energy bill with solar? A return on investment within four years?

Contact Novel Remodeling to find out which solar plan fits your lifestyle, because after January 1st - the energy company decides for you.

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