How to Build an ADU and Keep Your NEM 2.0 Solar Benefits: Our Recommendation

The rise in popularity of Accessory Dwelling Units (ADUs) in California is a trend that shows no signs of slowing down. Whether you're building an ADU for additional living space, a rental unit, or to house a family member, it’s important to understand how adding this new structure might impact your solar energy system, especially if you're currently taking advantage of **Net Energy Metering 2.0 (NEM 2.0).

NEM 2.0 is a key benefit for homeowners with solar systems, allowing them to earn credits for excess energy they send back to the grid. But when it comes to building an ADU, **adding a new unit with its own electrical meter could impact your solar savings and energy costs**. In this post, we’ll explore how NEM 2.0 works, why your ADU could affect it, and what we recommend to make sure you don’t lose your NEM 2.0 status

Understanding NEM 2.0: What It Means for Homeowners**

Net Energy Metering 2.0 (NEM 2.0) is a program offered by California utilities that allows solar homeowners to receive credit for the excess electricity their solar panels generate and send back to the grid.

-How it works: During the day, when your solar system generates more energy than you use, the excess power flows back into the grid, and you earn credits. At night, when your panels aren’t generating energy, you draw power from the grid, and those credits are used to offset your energy consumption.

- Why it’s valuable: Under NEM 2.0, you receive credits at the full retail rate for the energy your solar panels produce. This helps lower your electric bills, and over time, can significantly reduce the overall cost of your solar system.

However, if you're considering building an ADU, there are a few things to keep in mind regarding your solar energy system.

The Challenge: ADUs and Their Impact on NEM 2.0

Adding an ADU to your property means you’re adding another living space that will require its own energy usage. If your ADU is connected to the same electrical meter as your primary home, it will increase your overall energy demand. But here's the catch: If the ADU uses more power than your solar system is generating, you could lose some of the benefits of NEM 2.0.

When you add a new structure to your property, like an ADU, the utility companies may view the ADU’s energy consumption as part of your home’s total energy usage. This can create several complications:

1. Higher Energy Usage: The ADU’s additional energy consumption could push your home’s total usage above the amount your solar panels are generating. While you’ll still receive credits for the excess energy you generate, if the ADU uses more power than your panels can produce, you might need to buy more electricity from the grid.

2. Potential Impact on NEM 2.0: In some cases, if the ADU is not separately metered and is drawing power from the same meter as your primary residence, the utility may recalculate how your system’s credits and charges are applied. This could cause you to lose some of your NEM 2.0 benefits, especially if your total energy usage increases beyond what your solar system can offset.

Our Recommendation: Put the ADU on a Separate Meter

To ensure you don’t lose your NEM 2.0 status when building an ADU, we recommend installing a separate meter for the ADU. Here’s why:

- Separate Billing: If your ADU is on a separate meter, its energy consumption will be tracked separately from your primary home. This means the electricity used by your ADU won't count against the solar energy credits generated by your existing system.

- Retain Your NEM 2.0 Benefits: By keeping the ADU on a separate meter, your primary home’s energy consumption—and the amount of energy it sends back to the grid—will remain independent. You can continue to earn full credits for the energy your solar panels produce, without the ADU’s energy usage affecting your NEM 2.0 benefits.

- Flexibility: If the ADU is using a lot of energy (for example, if it has high-energy appliances, air conditioning, or electric heating), a separate meter allows you to manage each unit’s power use independently. This can help you avoid unexpected bills or disruptions to your solar energy credit balance.

Additional Benefits of a Separate Meter for Your ADU

Besides protecting your NEM 2.0 status, there are other financial and logistical advantages to putting the ADU on a separate meter:

- Clearer Energy Usage: You’ll have a more accurate picture of how much energy your ADU is using versus your primary home. This can help you assess whether the ADU is using more energy than expected and make adjustments (like adding more solar panels or improving energy efficiency) if needed.

-Future Flexibility: If you decide to rent out the ADU or sell your property, a separate meter can make it easier to track and allocate electricity costs, as well as create a clear distinction between the energy use of the primary home and the ADU.

Tax and Incentive Benefits: Depending on the energy programs available, a separate meter might help you qualify for certain incentives or tax credits related to the energy efficiency of your ADU.

Final Thoughts

Building an ADU is a fantastic way to add value to your home and increase living space, but it’s essential to keep an eye on how it impacts your solar energy system and your NEM 2.0 benefits. By installing a separate meter for the ADU, you can avoid complications with your solar credits and ensure that you continue to reap the rewards of your solar investment.

At Rooftop Solar, we specialize in helping homeowners maximize the benefits of their solar systems, whether they’re building an ADU or just looking to optimize their current setup. If you’re planning to build an ADU and want to ensure your solar system is set up for success, feel free to contact us. We’ll guide you through the process and help you protect your NEM 2.0 status while you add that extra space to your home.

Q1 2024 Solar Market Overview: A Record-Breaking Quarter and Its Impact on Homeowners

As we enter 2024, the U.S. solar market has made headlines with astonishing growth, installing 11.8 GW of solar capacity in the first quarter alone. This not only sets a record for the first quarter of any year but also marks the second-largest quarterly total in the history of the solar industry. At Unicorn Solar, we understand that homeowners facing high utility bills are particularly interested in how these developments can lead to long-term savings and energy independence.

Solar Power: A Solution to Rising Utility Costs

In Q1 2024, solar energy accounted for 75% of all newly added electricity-generating capacity in the U.S. This shift underscores how more and more homeowners are turning to solar as an effective solution to combat rising electricity costs. With solar panel systems, you can significantly reduce or even eliminate your monthly utility bills, making a proactive choice for your financial future.

Domestic Manufacturing Boost Promises Benefits

Another encouraging trend is the increase in domestic solar module manufacturing capacity, which rose to 26.6 GW in Q1 2024 from 15.6 GW in Q4 2023. This growth is essential as it signifies a move toward locally made solar solutions that can help ensure reliable supply chains and potentially lower costs for homeowners. As this capacity ramps up, you can expect a greater variety of affordable solar options available.

State Highlights: Where Homeowners Can Benefit

Florida and Texas emerged as leaders in solar installations during Q1 2024, with 2.7 GW and 2.6 GW installed, respectively. These states have made substantial investments in utility-scale solar projects that can help lower energy prices for residents. If you live in these regions, you have a unique opportunity to explore solar options that could reduce your reliance on traditional electricity sources.

Residential Sector Challenges and Opportunities

However, the residential solar segment faced challenges, with installations dropping to 1.3 GW—the lowest since Q1 2022. This decline is primarily due to regulatory changes, particularly in California, where shifts in net energy metering have led to confusion and hesitancy among homeowners. If you’ve been contemplating solar, now is the time to act as new regulations may impact future installations and financial incentives.

Robert Benedict shared his personal experience, highlighting how even solar users could see increased bills when not considering their entire utility strategy. This emphasizes the importance of making informed choices and potentially advocating for better pricing structures with local utilities.

Commercial and Community Solar: Options for Homeowners

While the commercial solar segment remained steady, with 434 MW installed in Q1 2024, and the community solar sector also matching last year's figures, both areas experienced a decline from Q4 2023. Homeowners interested in community solar arrangements can still find options that allow them to benefit from shared solar resources, even if they cannot install systems on their own properties.

Utility-Scale Solar: A Game-Changer for Energy Rates

Utility-scale solar installations soared to 9.8 GW in Q1 2024—the largest first quarter for this segment ever recorded. These large projects are critical in reducing energy costs for consumers, as they create economies of scale that can lead to lower electricity prices across the board. As these projects come online, it’s an excellent opportunity for homeowners to take advantage of lower rates driven by renewable energy growth.

Navigating Policy Changes for Homeowners

In recent months, the solar industry has faced various policy shifts, including increased tariffs on imported solar modules. While these changes may appear daunting, the overall outlook remains favorable for homeowners interested in solar. The market is expected to maintain a consistent installation pace, allowing for increased competition that can ultimately lower costs for consumers.

Looking Ahead: Your Path to Energy Savings

Despite the projected flat growth in the solar market over the next couple of years, there’s still a considerable opportunity for homeowners to transition to solar. As demand stabilizes and residential solar options become more diverse, now is the perfect time to explore how solar can offset your high utility bills.

By investing in solar energy, you not only take control of your energy costs but also contribute to a more sustainable future. Don’t wait for changes in the market or regulations—reach out to Unicorn Solar today. Our team is here to help you navigate your options, assess your unique needs, and empower you with the right solutions to make solar work for your home. Together, we can turn your high utility bills into energy savings and a brighter tomorrow.

The Dangers of Federal Pacific Electric Panels (FPE) and Why You Should Replace Them

When it comes to home safety, few things are as critical as your electrical system. One component that many homeowners might not even think about—but should— is the electrical panel. Specifically, homes equipped with Federal Pacific Electric (FPE) Stab-Lok panels face a higher risk of electrical fires and other safety hazards. In this blog post, we'll explore why FPE panels are dangerous and why replacing them is essential for the safety of your home.

What is a Federal Pacific Electric Panel?

Federal Pacific Electric (FPE) was a popular manufacturer of circuit breaker panels from the 1950s through the 1980s. Their Stab-Lok panels were installed in millions of homes across the United States. Unfortunately, over the years, these panels have been linked to serious safety concerns, including a high rate of failure in properly shutting off electricity during a short circuit or overload.

Federal PACIFIC PANEL

The Design Flaw: Why FPE Panels Are Dangerous

The primary issue with FPE panels lies in their circuit breakers. Normally, if there is a surge of electricity or a short circuit, a circuit breaker is supposed to "trip," cutting off the flow of electricity to prevent overheating and fires. However, FPE Stab-Lok panels have been shown to fail at tripping properly, sometimes as much as 60% of the time.

This means that, even in dangerous situations, electricity may continue to flow through the wiring, leading to overheating, potential electrical fires, and other hazardous conditions. Simply replacing the breakers does not fix the design flaw in the panel itself, leaving homes vulnerable to these risks.

Common Problems with FPE Stab-Lok Panels:

• Breakers Fail to Trip: The most dangerous issue is the failure of breakers to trip during electrical surges, leading to overheating.

• Overheating and Fire Hazards: With electricity continuing to flow unchecked, there’s a significantly higher risk of fire.

• Loose Connections: Poor design can lead to loose connections within the panel, which exacerbates the fire risk.

• Outdated Technology: These panels were built decades ago and don’t meet modern safety standards.

How to Know If Your Home Has an FPE Panel

If your home was built between the 1950s and 1980s, there’s a chance it might have a Federal Pacific Electric panel. You can check by looking at your main electrical panel—often found in garages, basements, or utility rooms—and looking for the brand name "Federal Pacific Electric" or "Stab-Lok" on the cover or the breakers.

If you’re unsure or concerned, it’s always best to have a licensed electrician inspect your panel.

Why You Should Replace Your FPE Panel

Even though FPE panels have been in homes for decades, that doesn’t mean they’re safe. The risks increase as the system ages, and continued use of an FPE panel is a serious liability. Most electricians, home inspectors, and insurance companies recommend replacing these panels due to their well-documented hazards. Many insurance companies may even deny coverage or raise premiums if they find an FPE panel in your home.

We Can Help

At Ally Electric And Solar, we specialize in electrical panel replacements, including upgrading outdated and dangerous FPE Stab-Lok panels. Our licensed and certified electricians will ensure your new panel meets current safety standards, giving you peace of mind and protecting your home from electrical hazards.

Why Choose Us?

• Licensed and Insured: We are fully licensed, insured, and committed to providing top-quality service.

• Safety First: We prioritize the safety of your home and your family by installing modern, reliable electrical panels.

• Expertise: With years of experience, we know how to properly assess, replace, and upgrade electrical panels with minimal disruption to your home.

Conclusion

If your home has a Federal Pacific Electric panel, it's time to consider replacing it. The risks far outweigh the costs, and upgrading your electrical panel ensures your home meets today’s safety standards. Don’t wait until an electrical issue turns into a fire—take action now.

Contact Ally Electric And Solar today at (510) 559-7700 for a consultation and keep your home and family safe.