Chapter 5 · California Policy — NEM 3.0 in Depth
5.5 Charging by "production" is the biggest scam of the NEM 3.0 era
Here's a real contract from a well-known installer: $200 per month, system produces 11,000 kWh per year, "equivalent to $0.218/kWh."
That sounds cheaper than the $0.30 grid rate — except the customer's actual total electricity spend went from $210 to $315 per month.
Why? Because:
- The contract bills you based on production, but only 1/3 of production actually serves your home under NEM 3.0 (the rest is exported at the cheap ACC rate).
- The system was deliberately undersized (looks adequate in summer, severely short in winter).
- You go on vacation for a month and your house consumes nothing — but you still owe $200 while the system donates power to the grid.
A contract must bill on "actual offset bill" or "actual self-consumed kWh," not on production. This is a must-check item before the cooling-off window closes.
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5.4 What "saving money" actually looks like under NEM 3.0
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5.6 "Annual production" can be a trap under NEM 3.0
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Questions after reading this section? Send us your utility bill — we will come back within one business day with a recommendation specific to your situation.