top of page

NEM2 SUNSET Q&A


Q: When does the NEM2 program end (what is the sunset date)?

A:The NEM2 program will be closed to new applicants starting 04/15/2023.


Q: What do I need to submit to qualify for NEM2?

A: Before 11:59pm on 4/14/2023 you must submit the following:

  • Completed application, free of major deficiencies (e.g. no blanks, incomplete/inaccurate document, changes requiring resubmission per Rule 21)

  • A single-line diagram•A signed CSLB Disclosure and Solar Consumer Protection Guide (For residential, non-self install only)

  • A signed Agreement and Authorization Form (For Standard NEM only)

  • To retain eligibility final inspection clearance must be submitted before 04/15/2026.

Q: Are changes allowed to my application after submission?

A: Generally speaking, no changes are allowed to applications after submission. However, per Rule 21 (Table F.1) a one-time modification request for one of the following reasons is allowed:

  1. Like-for-like equipment replacements.

  2. Size reductions not exceeding 20% (any upgrades or mitigations caused by the change would be paid for by the customer).

  3. Size reductions to avoid upgrades if the re-study determines the modification affects no other distributed energy resource (this modification is associated with a $300 fee).

Q: What does like-for-like mean?

A: For inverters: certified, same nameplate or smaller, same fault current or smaller.

  • For solar panels: certified same CEC-AC rating of the system or smaller.

  • For batteries: same or less kWh & kW rating and same operating profile.

  • For transformers: same connection type, same or smaller impedance and capacity.

Q: How is system size determined?

A: For solar systems: The lesser of inverter nameplate capacity (kW) or maximum solar output (CEC‐AC rating).

  • For Batteries: both the inverter nameplate capacity (kW) and the capacity of the storage device (kWh) are considered in the definition of size

  • For other generation types: the gross nameplate rating of the generator

Q: Will new construction projects that are unable to submit an interconnection application by the NEM2 Sunset date still qualify for NEM2. (Ie. do not yet have permanent meters, not yet in PG&E system, etc.)?

A. PG&E will make an exception for new construction projects unable to submit a completed application by the sunset date. If the load application is submitted by the NEM2 Sunset date, the project will be eligible for NEM2, provided the site is energized under the same Application for New Service Notification. To retain this eligibility, final electrical clearance must be granted by 04/15/2026.


Q: What does a major deficiency entail?

A: Blank fields, incomplete or inaccurate documents, or anything requiring application withdrawal and resubmission per Rule 21.


Q: What are some common major deficiencies?

A:Common major deficiencies include but are not limited to:

  • Wrong meter number; Material modifications, such as increasing system size.; Wrong Service Agreement ID (SAID); Failure to meet timelines; Changes in Point of Interconnection.

Q: Can I add a battery to my application after I submit?

A: Adding a battery after initial submission is considered a material modification that would result in withdrawal and resubmission of the application. If the resubmission of the application is after the NEM2 Sunset date (04/15/2023), the project will not qualify for NEM2. Instead, you could PTO the system without a battery and then submit an interconnection request for the battery later without losing NEM2 eligibility.


Q: What happens to incomplete applications in the portal after the NEM2 sunset?

A: Any applications that are in progress and not submitted on the portal by 11:59pm on 4/14/2023 will be canceled.


Q: Can I add to my existing NEM1 or NEM2 system and not move to the new tariff?

A: You can increase your system size up to 10% or 1kW, whichever is greater, without moving to the successor tariff. If you increase your system size beyond this threshold, it is unclear if you can retain any NEM1 or NEM2 legacy. The final decision was not clear on how modifications above this threshold would work after the sunset date. These details will be determined through the advice letter process.Revised 1/25/23.


Q: What is the process for applying for interconnection at a new construction site and do not yet have permanent meters before NEM-3 begins

A: PG&E will provide an exception to projects prevented from submitting a completed application because PG&E did not create a SPIDs in time for the NEM2 sunset date. If the load application was submitted before the sunset date, these projects will be eligible for NEM2 as long as they receive final electrical inspection sign off by 04/15/2026 (three years from sunset date).



409 views0 comments
bottom of page