NeoVolta expects California’s NEM program to drive increased demand

NeoVolta expects California’s recently updated Net Energy Metering program to drive increased demand for energy storage systems. On December 15, 2022, the California Public Utilities Commission issued a decision to update the NEM tariff to promote consumer adoption of solar and battery storage. The program will go into effect on April 13, 2023. According to the CPUC, the move was designed to financially incentivize Californians to install both battery and solar systems. The CPUC stated that the current NEM 2.0 program was not aligned with California’s grid reliability and climate goals, noting that the increased use of electricity between 4 and 9 p.m. causes dependence on fossil fuel gas plants to meet the demand. With the battery storage incentive, the CPUC hopes to see an increased adoption of residential energy storage that will better support the needs of the grid, with customers saving self-generated solar energy for use in the evening hours. An additional $630 million in state funding has been set aside by the California State Legislature for residential low-income solar plus battery storage adopters. The decision bolsters federal incentives provided by the Inflation Reduction Act for solar and battery storage.