[janpieterz]

Yea, that's my understanding of the introduction of the NEM 3 policy. Production of energy isn't the problem in California (aka: sun), having it stored and accessible at the right moment is. Previously people would be feeding back solar during peak sun hours and getting paid, while taking energy at night and having an effective "0 dollar use" bill if they consume the exact same amount (there is some base connection fee).

The NEM 3 policy reduces a lot what you get paid unless you contribute back during the peak use hours, they say it's "avoided cost" pricing. On the surface it seems fair, you're paying for more than generation when you use energy so you generating and contributing back during huge surplus isn't as valuable as you using during night time.