Guide OverviewChapter 5 · California Policy — NEM 3.0 in Depth
Chapter 5 · California Policy — NEM 3.0 in Depth

5.6 "Annual production" can be a trap under NEM 3.0

Under NEM 3.0, summer surplus cannot be carried over to offset winter consumption at face value. California winter and summer outputs differ enormously — winter is roughly half of summer. So the bill outcome is driven by winter production, summer production, and how well they match your seasonal usage curve.

But most salespeople still pitch using "annual production" as the headline number.

Why? Because annual production looks great in a chart. Averages hide everything. The moment you start discussing seasonal variation, the customer starts doing math, and the customer starts hesitating. Either the salesperson genuinely doesn't understand the policy — in which case they can't honestly model your bill — or they understand it perfectly and choose not to explain it, because their only goal is getting your signature.

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