What is Net Energy Metering?

Net Energy Metering 3 (NEM3), also known as the Solar Billing Plan, is a policy that has brought big changes to the solar energy demographic in California. The California Public Utilities Commission reduced the export rate for residential solar electricity by around 75% in April of 2023. Lower export prices will increase the payback period for solar owners under Net Energy Metering 3.0 and decrease the overall savings. One notable aspect of NEM3 is using Grid Tie Battery Back-Up (BBU) systems.

man installing solar panels on a roof

Grid Tie Back-Up Systems | Security

Under Net Energy Metering 3.0, California customers can now install Grid Tie BBU systems with lithium batteries.  Battery storage systems allow customers to capture excess solar energy generated during peak production periods for later/more economical use. This allows access to stored solar energy during times of need and can be utilized in several ways. 

These are commonly used for brown-out periods when the grid is not providing enough power, complete grid power outages ((blackouts), evening out your peak demands by peak shaving, or load shifting the energy usage to more optimal timeslots to reduce your energy bill.

Tax Incentives 

One of the key benefits of installing Grid Tie BBU systems with LiFeP04 batteries is the availability of incentives. There are various incentives in some States and Federally, such as rebates, tax credits, or other financial incentives (discounted rates), to offset the upfront costs of implementing battery storage systems. This is designed to encourage/motivate the shift to eco-friendly power solutions. LiFeP04 batteries promote sustainable and resilient energy for deep-cycle battery storage applications.

In addition to incentives and rate structures, Net Energy Metering 3.0 imposes certain technical requirements for customers with Grid Tie BBU systems and LiFeP04 batteries. 

These requirements may include safety certifications, interconnection standards, and monitoring capabilities to ensure that the battery systems are installed and operated safely and reliably, lowering the chance of any potential risks or impacts on the grid. The technical sales team has decades of experience with design and permitting and is a solid resource for this information. 

Cost Saving Opportunities

Net Energy Metering 3.0 changes in California utilities have created significant opportunities for using Grid Tie BBU systems with battery backup. These changes include incentives, new rate structures, technical requirements, billing arrangements, and grid service program participation. 

Adopting Grid Tie Battery Back Up Systems with LiFeP04 batteries can promote a more sustainable and resilient energy system in California, providing customers with increased energy independence and potential cost savings. As the solar energy landscape continues to evolve, Net Energy Metering changes, and using LiFeP04 batteries offers exciting possibilities for California utility customers.

Dragonfly Energy LiFePO4 Batteries 

Dragonfly Energy provides a complete range of LiFePO4 batteries for 12-volt, 24-volt, and 48-volt systems, which are the ideal substitutes for conventional lead acid batteries. Lithium Iron Phosphate is known to last up to 10 times longer than lead-acid counterparts, reaching 75-85% of their capacity, even after 3000-5000 life cycles. 

Dragonfly Energy lithium battery

Most LiFePO4 battery storage systems typically take 10-15 years to reach this many life cycles. In addition, they offer two to three times more power, as well as charging five times faster than lead-acid. Dragonfly Energy batteries are designed with superior performance and reliability, trust you can count on for years to come.

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