Assessing California’s Climate Policies—Residential Electricity Rates in California

Jan 7, 2025 - Adoption of NEM 3.0 Intended to Mitigate Projected Increases in Solar Cost Shift. The main explanation for why NEM 3.0 provides a lower amount of credit to solar customers compared to the previous NEM programs is that the new structure credits customers only for the costs the utility avoids by not having to buy electricity elsewhere to serve them.
https://lao.ca.gov/Publications/Report/4950