[SMM PV News] California Court Upholds NEM 3.0

Published: Mar 11, 2026 16:56

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The California 1st District Court of Appeal has affirmed the CPUC's Net Billing Tariff (NEM 3.0), rejecting a lawsuit from environmental and solar advocates. The ruling upholds the 2022 decision that slashed rooftop solar export credits by up to 80% to address the 'cost shift' between solar and non-solar ratepayers. Despite industry data showing a 60% to 80% drop in sales and the loss of over 17,000 jobs since NEM 3.0 took effect, the court concluded that the CPUC met statutory requirements for 'sustainable growth'. This decision effectively ends the standalone solar business model in California, making battery storage integration essential for homeowners to achieve a viable return on investment.

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