NEM 2.0 vs NEM 3.0: Side-by-Side Guide for Solar Shoppers

Side-by-side rate structure

NEM 2.0 (grandfathered systems): exports credited near retail on applicable tariffs. NEM 3.0 (new interconnections): exports paid at avoided-cost adders that are roughly 75% lower on average than old retail credits.

Payback impact tables

Under NEM 2, oversized systems that exported heavily could still pencil out. Under NEM 3, oversizing strictly for export often hurts ROI. Target 80–110% of annual usage with usage shifted to solar hours; high-watt modules reduce roof clutter while hitting production targets.

Who still benefits from batteries

Homeowners needing outage backup, EV drivers charging at night, and high evening loads may justify Tesla Powerwall installer. Pure export arbitrage is weaker—size storage for resilience and self-consumption, not fantasy grid sales.

Migration myths

You cannot "switch back" to NEM 2 after interconnecting under NEM 3. Existing NEM 2 customers keep grandfathering for 20 years from PTO. Adding batteries later does not change your NEM vintage.

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