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CPUC Votes 5-0 on Revised  VNEM PD

The newly revised Proposed Decision establishes a successor tariff that introduces an entirely new framework for valuing exported energy. The new methodology may reduce the value of exported energy compared to NEM 2.0 levels.

Lock in NEM 2.0 Rates
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Act Fast to Secure NEM 2.0 Rates

Submit your complete interconnection application as soon as possible to ensure your solar projects secure NEM 2.0 rates before the successor tariff takes effect.
Important Deadlines:
1. NEM 2.0 for 9 years and No Prevailing Wage - Projects grandfathered between November 16th, 2023 - December 31st, 2023.
2. NEM 2.0 for 9 years with Prevailing Wage Applied - Projects grandfathered between January 1st, 2024 - February 15, 2024.  
3. NEM 3.0 for 20 years with Prevailing Wage Applied - Projects submitted after final sunset deadline (February 15, 2024).

The Sunset Period

Based on initial analysis, this new NEM-3 tariff will substantially decrease the value of solar exported credits, which equals a 30-40% loss in potential NOI. Other states that have implemented a similar cliff in the export compensation rate have seen sharp declines in solar deployment.

The commission voted to approve the revised Proposed Decision on November 16, 2023.  Now property owners will have until December 31, 2023 to grandfather projects under NEM-2 rates for 9 years with no prevailing wage. This sunset period begins from the date the VNEM tariff expiration is complete, as long as your application is deemed complete by your utility company and is submitted within this deadline, you can secure NEM 2.0 rates.


Time is of the essence. We expect solar contractors will see a surge of customer activity as the sunset date draws near for California’s most favorable solar rates. If you intend to take advantage of today’s solar rates, start planning the project as soon as possible. Contractors may need about 45 days to design your solar system and prepare an application to interconnect your system with the electric grid.

In order to qualify and grandfather your project into NEM 2.0 and be locked in for 9 years, the requirements are:
1. Engineering SLD (Single Line Diagram and Site plan).
2. Interconnection application with a contractor license.
3. Dry utility package and building service gear engineering.
4. Three years to complete the project from the application date.

Ivy is Here to Help

Accuracy is important when you submit the application. The utilities allow for decreasing system size during the review process, but to increase the size you’ll have to submit a new application. Ivy is here to help you determine the ideal system size for your property so that you only have to submit one application and ensure the utilities accept it in a timely manner.

Navigating the interconnection application process can be daunting, but you're not alone. Ivy brings together a robust network of partners equipped to handle every requirement of the interconnection application. Our seasoned team is dedicated to guiding you through each stage, ensuring every piece of paperwork is not just complete, but impeccable. Count on Ivy to help you meet every deadline with precision and professionalism.

Fair Representation for Multifamily Properties

Ivy Energy has been advocating for regulators to adopt a robust solar tariff that serves multifamily properties. California’s 6 million+ renting households have been underserved by a solar policy designed principally for single-family homes. Yet renters receive tangible benefits every time solar is installed. Ivy has proven that a significant amount of solar generation at multifamily buildings is consumed on site, minimizing impacts on the grid. When paired with energy storage, solar exports can be smoothed and optimized for grid stability. Ivy was the only stakeholder involved in the proceeding exclusively focused on multifamily, advocating for increased equity in the program through fair treatment of the multifamily customer class.

We are here to help Property Owners Grandfather NEM-2 Rates

Ivy Energy can help you secure the highest value for your solar project. Property owners serious about investing in solar must act fast to ensure the best ROI. Reach out to our team today to learn how to get the grandfathering process started.

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