Expand Your Solar,
Keep Your
NEM Rate.

Why Solar Expansion Matters Now

If you're reading this, you're one of the savvy California homeowners who adopted solar early — securing your place in the state's highly favorable Net Energy Metering (NEM) 1.0 or 2.0 programs. You've enjoyed lower energy bills and the satisfaction of generating clean power.

But the energy landscape is changing fast. Utility rates keep climbing, and NEM 3.0 has cut the value of solar credits for new customers dramatically. Your grandfathered status is worth more today than when you signed up.

What if your energy needs have grown? An electric vehicle, a home office, a new family member. You might assume adding panels means losing your NEM rate. It doesn't.

As a nonprofit, Bright Saver's mission is to make solar accessible and affordable for everyone. We're here to educate, not to sell. Everything in this guide is factual, unbiased information — the same advice we'd give a neighbor.

What Is NEM-Preserving Solar Expansion?

Solar expansion means adding more panels to your existing rooftop system. Traditionally, any significant modification required a new interconnection agreement — forcing you onto NEM 3.0. But there's an exception.

A specific CPUC ruling allows small, plug-in solar expansions that bypass the interconnection process entirely. Instead of wiring into your main electrical panel, these systems plug into a dedicated outdoor outlet, feeding clean energy into your home safely and efficiently.

The Legal Basis: Your Right to Expand

Your ability to expand without losing your grandfathered rate is explicitly protected by law.

The key document is CPUC Decision 14-03-041. This decision allows existing NEM customers to add up to 1 kilowatt (1,000 watts) of generating capacity without triggering a new interconnection agreement.

The Technology: How Plug-In Solar Works

The system is intentionally simple. Two core components are all you need:

Savings Breakdown by Utility

Adding 1kW of solar generates roughly 1,500 kWh per year (based on 5 peak sun hours/day). The savings depend on your utility's electricity rate. Here's how it pencils out for California's three major IOUs:

Utility	Rate (2026)	Estimated Annual Savings	Payback Period — NEM GO
PG&E	$0.35 / kWh	$525 / year	~3.8 years
SCE	$0.20 / kWh	$300 / year	~6.7 years
SDG&E	$0.38 / kWh	$570 / year	~3.5 years

Estimates based on 1,500 kWh/year production (1kW system, 5 peak sun hours/day). Actual savings vary by location, usage, and utility rate changes. Use our calculator at brightsaver.org/calculator for a personalized estimate.

NEM 1.0 vs. 2.0 vs. 3.0: Why Your Rate Is Worth Protecting

Your grandfathered NEM status is one of the most valuable assets on your home. Here's exactly why.

Program	Export Rate	Credit Value	Status
NEM 1.0	Full retail rate	1-to-1 credit for every kWh sent to the grid	✓ Fully Protected
NEM 2.0	~93% of retail rate	Nearly 1-to-1 credit	✓ Fully Protected
NEM 3.0 (new)	~75% below retail	~$0.06/kWh wholesale rate	⚠ New Customers Only

Bright Saver Product Options

As a nonprofit, we've sourced simple, effective kits to help homeowners take advantage of the 1kW expansion rule. Both include solar panels, a UL-certified grid-tied inverter, and mounting hardware.

Frequently Asked Questions

Your Next Steps

Expanding your solar system under your NEM agreement is one of the smartest energy investments you can make in 2026 — more savings, cleaner energy, no bureaucracy.