NEM 2.0 Homeowners: Should You Upgrade Your Solar System or Leave It Alone?

If you already have solar in California, there’s a good chance you’re sitting on something valuable, and most homeowners don’t even realize it.

I’m talking about NEM 2.0.

And right now, a lot of people are being told to “upgrade” their system, add more panels, or throw in a battery. Sounds great on paper. But here’s the truth…

Making the wrong move can cost you thousands.

Why NEM 2.0 Is So Valuable

NEM 2.0 is one of the best solar programs California ever offered.

You’re getting close to retail credit for the extra power your system sends back to the grid. That’s a huge advantage.

The newer program, often called NEM 3.0, works very differently. The utility now pays you much less for your excess energy, and the entire strategy shifts.

So when you hear someone say, “let’s just add more solar,” you should immediately be asking:

“Am I about to lose my NEM 2.0 benefits?”

The Big Decision: Expand or Protect?

If your current system isn’t covering your usage anymore, maybe you added an EV, a pool, or your bill is creeping back up, you have two main options:

Option 1: Add More Solar + Battery and Move to NEM 3.0

This gives you more production, but you lose your NEM 2.0 status.

Now you’re relying heavily on a battery strategy to make the numbers work. It can make sense in some cases, but it’s not automatically the better move.

Option 2: Keep NEM 2.0 and Add a Non-Export System

This is where things get interesting.

You can add additional solar and a battery without exporting extra energy to the grid, which allows you to keep your NEM 2.0 agreement intact.

The tradeoff?

If your battery fills up and your home isn’t using the energy, that extra production can get “clipped” or curtailed.

Here’s What Most Solar Companies Won’t Tell You

Most companies don’t actually know how to structure these systems correctly.

They’ll push you toward a full upgrade, because it’s easier to sell and easier to install.

But that doesn’t mean it’s the best financial move for you.

Designing a proper expansion while keeping you in NEM 2.0 takes real planning:

• Proper system sizing

• Smart battery integration

• Load management strategy

• Understanding utility rules inside and out

If any of those are off, you either lose value or leave money on the table.

The Smart Way to Approach This

Here’s the simple way to think about it:

• If your current NEM 2.0 system still works well, protect it

• If you need more power, look at ways to expand without giving up your benefits

• Only consider moving to NEM 3.0 if the numbers clearly beat staying where you are

No guessing. No assumptions. Just real math.

What We’re Doing Differently at True Energy

At True Energy, we’ve built out a solution specifically for this situation.

We have the products and programs that allow homeowners to expand their system while staying in NEM 2.0 using non-export configurations.

This isn’t a cookie-cutter install. It’s a strategic setup designed to:

• Maximize your current solar value

• Add production where you actually need it

• Avoid unnecessary losses from switching programs

  
  

Bottom Line

If you’re on NEM 2.0, you’re in a strong position.

Don’t rush into an “upgrade” without understanding the full impact.

Because once you leave NEM 2.0…

You don’t get it back.

Want to Know What Makes Sense for Your Home?

If you’re not sure whether to upgrade, expand, or stay put, we’ll break it down for you.

No fluff. No pressure. Just real numbers.

Reach out and we’ll show you exactly what your best move is.