Net Metering Successor Tariff
Rate structures that replace traditional 1:1 net metering, typically crediting solar exports at a lower rate based on time-of-day, grid value, or avoided cost. Examples include California NEM 3.0.
Why It Matters
As states move away from full retail net metering, battery storage becomes more important to self-consume solar production during peak hours.
Related Terms
Net Metering
A billing mechanism that credits solar energy system owners for the electricity they add to the grid. The excess power generated during the day offsets power consumed at night.
NEM 3.0 (Net Billing)
California's successor to traditional net metering, which compensates solar exports at a lower "avoided cost" rate rather than the full retail rate. Took effect April 2023.
Net Billing
An export compensation mechanism where excess solar electricity sent to the grid is credited at a rate lower than the retail rate — typically wholesale, avoided cost, or a set export rate.
Avoided Cost
The cost a utility would have incurred to generate or purchase electricity that was instead provided by a distributed resource like rooftop solar.