Crazy California Just Killed Residential Solar

this video is brought to you by drone quote on December 15 2022 the California Public Utilities Commission the cpuc unanimously voted to approve nem-3 or net energy metering 3. the way they will bill you and credit you for solar production here in California so I've had some time to think about this and there's no easy way to say this this is bad this is bad news for all of us anyone thinking about going solar and I'm going to break this down for you today and give you my advice and recommendations of what you can do to be the best equipped going forward in 2023. all right I'm Ricky I'm a stupid da Vinci nem3 net energy metering 3 is an agreement you have to make when you go solar if you want to export energy back to the grid now your solar panels are yours your house is yours all your wiring and everything else past your surface panel is yours but you're hooking up to a grid a big machine that is not yours so you have to have this agreement because historically what we've done is we produce solar to power our homes but then we have more than we need we export it to the grid and in the past you'd get a credit and then you'd use that grid power at night when the Sun goes down and you'd be kind of you know offsetting your power of production but now things are going to change so first of all this new plan will take effect on April 13th 2023. what that means is you have to have a interconnect agreement with your utility if you live in California before then you don't actually have to finish your system but you have to have the agreement signed before then if it takes you another six months to complete your system because you need a new roof or whatever else that's okay but you have to have that interconnect agreement before April 13th and I'm gonna say that one more time because it's really important if you do this you will be grandfathered into the old plan nem2 for the next 20 years and trust me you want to do that we'll get back to why here in a second so what is nem 3 gonna do well they're going to reduce the purchase price of your excess solar generation so with any M2 in the past you got the retail rate meaning if your company charges you 20 cents per kilowatt hour well if you export a kilowatt hour they would credit you 20 cents to use later so it's like a one-to-one deal so now those rates are going to drop by roughly 75 percent to a new thing that they're calling the avoided cost calculated price the first thing that drives me crazy about this is this number is a little bit abstract they haven't really told us what that means and it's going to vary day by day and hour by hour but the idea is what are they avoiding by buying your solar what are they avoiding in terms of price that's what they'll give you so for example at High Noon when everybody else is making solar power too you're going to get very little in the way of a refund and this is ultimately going to increase your payback period for solar so if in the past it was four years now it might be six and a half or seven years and that's what sucks about this that's what nem is so what isn't it well first there was talk about a baseline fee and this is what got me fuming last year the last time they took this vote they wanted to add a rate to your bill no matter what so let's say for example you had a five kilowatt system they wanted to tax you and put a flat rate every month even if you were not home to have filler and this is not going to happen so the good news number one that's not happening the second thing is there's no change to the tax credit for going solar it's still 30 percent for the next 10 years so if you go solar even after April 13th you get your 30 tax credit on your entire installation price for going solar so let's put this into practice then okay I'm installing a 10 kilowatt system now I've just got the roofing and I'm in the process of getting the installation happening and the permitting and everything else so my system on a good summer day can produce around 62 kilowatt hours of energy so let's say my house just for the sake of argument also used around 62 kilowatt hours a day now if I didn't have that solar system based on my current rates here in San Diego which are some of the worst I would pay 14.31 cents a day or 429 dollars a month in electricity so without solar my bill would be 429. now with a 10 kilowatt system I would also produce around 62 kilowatt hours of energy and if I got a credit for all my usage I would roughly be at around zero actually I'd have a 20 credit at the end of the month the utility would owe me money but now with any M3 and the reduced rates of about 75 percent my bill would only be reduced by 3.75 cents a day meaning my 429 dollar bill that I owed without solar now would be 317 not zero so that is a huge reduction in the value of going solar and clearly this is horrible news right there's just no way to get around it so if you've been thinking about going solar in California I got to tell you I'm not really a big fan of high pressure sales and things right if you come to my house and tell me oh you have to act now and buy this today or the prices go up I'm kicking out of my house I don't like high pressure sales and that's why I've always liked the service that I use called drone quote but I got to tell you if you're thinking about going solar in Calif fornia April 13th is kind of the biggest date in history I think the last 10 years of going solar so what can you do well get solar now if you're ready or you've been on the fence or waiting for that moment that kick in the pants to go solar this probably is it and drone quote can help you with that so over a hundred now I think over well over 100 people who watch our show our viewers have gone solar with drone quote the reason why I love drunko is there's no high pressure sales people drumco is there to work for you so step one you have them come out and do a roof survey they have qualified drone piles they'll take a good survey of your roof that way you can figure out if you need new Roofing done like I did so I couldn't go solar until I got a new roof to help you with that and they'll do a good job of giving you a more accurate estimate with that then they can bid out your project to different installers keeping your private information private and the installers can say okay I can install it for this price and you see all those prices and you pick whichever one you want or none at all right that's the beauty of drone quote you're not giving your information to anybody and you have this company that works for you to get you the best deal possible and puts all the leverage in your hands so if you've been thinking about going solar and again I hate to do this because my experience has always been do things when you're ready when you've saved money right when you're comfortable but I got to tell you and this kind of sucks but if you've been thinking about going solar I would urge you if you live in California to really consider doing it before that April 13th date and if you want to check that out we'll have links in the description below for drone quote you can go check it out for yourself so let's do a quick recap then right nem 3 sucks and it's really really bad and what's really frustrating is that sdg e my company that produces electricity for us here is a monopoly and they make plenty of money this is not like these companies were hurting and they had to make some sort of change and you gotta also remember like you might sound like oh there is way too much sunshine in the day and we don't need that power well residentially maybe you're at work but you know what we have happening at noon every Mall every industrial center every commercial office building all needs power and that's what they've been doing they've been taking our solar power and powering other things with it now let's switch gears and talk about what you can do at the end of the day I think what this plan tells you is the importance of energy storage your excess production Now is really not valuable anymore right so if you go solar before April 13th your grandfathered in like we said before nothing really changes but let's say you go solar at the end of the year right well now your excess generation is kind of useless so the best thing to do maybe is get a smaller system maybe you can't take your build down to zero but if you just make a smaller system work for you well then you can cut your production and your energy usage at your own house without exporting too much extra and reduce your bills and have a smaller system still the tax credit and everything else or your second option is get the big system that you want and couple it with batteries so in the previous example I mentioned my house would be 420 a month well I did the math on this and here is a graph that we'll show on screen about what it would look like if you had two Tesla power walls so that's about 28 kilowatt hours of storage and if you did that you could Bank all that extra instead of exporting it charge your battery and then power your house all the way through the night and as a result you'd have a zero built because it would appear to the utility like you're not even home right there's just a little blip where the battery would run out if you only had two on a house as big as mine and you'd have a little blip and then you'd have a little bit of export but because that export is bigger but it's valued so much less you'd have a small Bill pretty much close to around five or ten dollars a month now if you wanted to have a completely zero build you'd have to go with three power walls for my house and if you have questions about like how many batteries you need and stuff don't be shy leave us a note Chrome quote can also help you with that we'll put some emails and some other resources down below but basically you've got to go with battery storage now so the part about this that I like is control right I don't trust utility companies or anybody else with my power and my needs that's why I love solar and that really hasn't changed but now maybe you got to also add in batteries the problem with that is two Tesla power walls will cost you I don't know around twenty five thousand dollars so if that's what you have to add now to your system that does kind of suck and I hear you but you gotta also remember if you have two Tesla power walls or any home battery you also have resilience if the power goes out and by the way sdg e this company that is kind of driving me crazy at every turn we have power outages they're not crediting me for that they've charged me a thousand dollars for the month of December for energy usage Gas and Electric but they also had an eight hour power outage right before Thanksgiving and where's my credit for that so they're screw-ups they don't really recoup you for and that's the part that kind of drives me crazy so if I had a big Tesla powerwall or a big battery storage system I would have had no outage I'd have to mess with them and just kind of cut them out of the loop as much as possible because you see these votes and these guys they're powerful and they have the ability to bring up votes and change the policies around the good news is you are grandfathered if you move before the 13th but I wish I had better news this does kind of suck but the good news is if you decide to go solar now for example and then two years from now you save up for batteries that won't change your agreement you'll still be nem2 for your solar and adding batteries won't change that but if you go with a small system thinking oh let me get a small system before that April 13th deadline and then you add to your system and you try to get it permitted they will move you out as long as it's like five percent or ten percent bigger in size which odds are it will be and if you do that you'll be back to square one so historically the two things I've always said no longer are true for the next couple of months which is one take your time don't ever Rush right there's now a reason to rush kind of sucks and two I've always been a believer that you should buy a small system today and wait and over time add on to it my old house I had a 1.2 kilowatt system for the first six or seven years and when I saved up enough money I added on to it and it came out to about a five kilowatt system and I know I've already stressed this enough and I'm going to stress it one final time April 13th you have to have an interconnect agreement before April 13th if you do the difference in your buyback period is going to be dramatic and you can go sell it without a battery and still make it worth your while and if you're going to wait until after that you have to really think about the battery component as well now you might be thinking this is California those crazy yahoos in California why does it matter to me well the bad news when it comes to solar electric cars any kinds of you know sustainability initiatives California drives the way and odds are now that this is passed here in California every other state is going to try to do the same thing and if you're stuck in a monopoly like many people are in the US when it comes to energy it's just a matter of time now for you as well now I can look into other states and where this is happening but my prediction is the next year or so this is likely going to roll out everywhere so yes California is going to be the first to be impacted negatively big surprise but others are going to follow suit sadly kind of California leads the way when it comes to this stuff normally in a good way right Eevee adoption going solar we lead the country in solar by a wide margin but here's an example of leading the wrong direction and um it does suck I'm sorry that there's not better news but as far as what you can do you can still go solar just add batteries to it and cut the need for them out altogether that'd be my advice they can't control what you do with your power that you store and use yourself that hasn't changed and that never will that's your house it's your power but the more you need them they control the cards they have the Monopoly and you lose the power that's just the sad State of Affairs and uh we will be making a ton of videos around going solar I just got my new roof done the racking is up my system is going in our interconnect agreement has already been filed and we're going to be probably finished and permitted to operate in February is my goal it's been a long lead up to this is because of that roof problem but don't forget the importance of going with a new roof or a good roof before you go solar don't put solar on a bad roof you'll regret it trust me but yeah a lot of videos coming out here guys don't forget to check out drone quote huge thanks drunko for sponsoring the episode and if you're curious you want to move forward quicker than later definitely would recommend checking out drone quote all right I'm Ricky DaVinci we'll catch you guys next week

Channel: Two Bit da Vinci

Views: 402,618

Keywords: two bit da vinci, solar power, nem 3, solar power lorde, solar system, solar panels, solar power bank, solar power system, nem 3.0 california, nem 3.0 california explained, nem 3.0 california update, solar power bank review, nem 3.0 vs 2.0, nem 3.0 ruling, nem 3.0 california vote, pge nem 3.0, Why California Might Have Killed the Future of Solar, net energy metering, california solar vote, changes to going solar, going solar 2023, future of solar, is solar worth it

Id: cogaWBFVJWg

Length: 13min 16sec (796 seconds)

Published: Tue Jan 03 2023

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[u/orion1836]

HUGE cost difference before and after the deadline. Now's the time if you're sitting on the fence in CA.

[u/greenshedbuilds]

Is the following post a relevant perspective here?

https://www.instagram.com/p/CnZUoLMKIhE/?utm_source=ig_web_copy_link