Buying a Home with NEM 2.0 Solar

NEM 2.0 grandfathering runs with the meter and the property, not the original owner. When the home is sold, the new owner inherits the remaining grandfathering years. A buyer does not need to re-apply or re-qualify \u2014 the NEM 2.0 agreement stays attached to the service address.

A system with more than 10 years of NEM 2.0 grandfathering remaining adds roughly $3.50\u2013$4.00/W of home value versus an otherwise identical NEM 3.0 system \u2014 because NEM 2.0 export credits are 5\u20138\u00d7 higher. A 7 kW system with 12 years left can represent thousands of dollars per year in avoided utility cost.

Find the exact remaining years for any PTO date with the NEM 2.0 grandfathering calculator.

1. Get the most recent utility bill and find the NEM schedule \u2014 look for NEM2 (or legacy NEM 1.0) versus NBT (Net Billing Tariff, which is NEM 3.0).
2. Ask for the PTO (Permission to Operate) date from the seller or HOA \u2014 it sets the 20-year grandfathering clock. PTO before April 15, 2026 is NEM 2.0.
3. Confirm the system size matches the interconnection approval \u2014 an unperted expansion past 10% / 1 kW may have already reset grandfathering.
4. Check for a true-up period on the bill \u2014 NEM 2.0 accounts have an annual true-up; NEM 3.0 accounts are settled monthly.

Full step-by-step (including the SCE, PG&E, and SDG&E portal lookups) is in our how to check your NEM status guide.

• The listing says \u201csolar\u201d but the bill shows NBT (NEM 3.0) \u2014 a common misrepresentation.
• No PTO date or interconnection paperwork available \u2014 the system may be unpermitted.
• A lease or PPA is attached to the home \u2014 you may be assuming a contract, not owning the system.

Want a licensed contractor to look at the system before you close? Request a complimentary assessment.