NEM 3.0 cut solar export credits by 75%.
A battery is the fix.
PG&E switched new solar customers to the Net Billing Tariff in April 2023. Export credits dropped from near-retail to pennies per kWh. Solar without a battery on PG&E now exports cheap at midday and buys back expensive at night. Here's what that means in dollars, and what to do about it.
Get a Free QuoteWhat NEM 3.0 actually is.
NEM 3.0, officially the Net Billing Tariff (NBT), is PG&E's current solar export rate for new installations since April 15, 2023. Under NEM 2.0, your solar panels exported power to the grid at or near the full retail rate, roughly $0.38 to $0.45 per kWh. You built up credits during the day and used them at night.
Under NEM 3.0, exported power is valued using the Avoided Cost Calculator, a set of hourly wholesale rates. The average export value lands around $0.05 to $0.08 per kWh. PG&E still charges you $0.40 or more when you buy that same power back in the evening.
That gap is the problem. You're selling low and buying high. A battery fixes it by storing what you produce during the day and using it when rates are high.
How we got here
What NEM 3.0 means
for a real PG&E bill.
Example: 1,200 kWh/month home in El Dorado Hills on PG&E. System produces 1,000 kWh/month. Without a battery, most production is exported during the day while the homeowner is at work.
Old rules
New rules, no battery
New rules, with battery
These are illustrative estimates based on average usage and rates. Your numbers depend on your bill, system size, roof, and actual ACC values at time of install. We run this on your real bill at the consult.
The fix is a battery.
Here's why it works.
A home battery stores your solar production during the day. You use that stored power in the evening when PG&E rates are highest. Instead of exporting at $0.06 and buying back at $0.40, you're capturing your own production at full retail value.
The Tesla Powerwall 3 (13.5 kWh) stores enough production to cover most evenings for a typical NorCal home. Pair it with a correctly sized solar system and the economics under NEM 3.0 look a lot like NEM 2.0 did. Solar only under NEM 3.0 often doesn't pencil. Solar plus battery usually does.
For PG&E customers, we almost always design solar and battery together. It's not upselling. It's the honest answer to what NEM 3.0 actually does to the numbers.
SMUD customers: NEM 3.0 does not apply to you.
SMUD is a community-owned utility and is not subject to CPUC jurisdiction or the Net Billing Tariff. SMUD runs its own Solar and Storage Rate, which pays a flat export credit year-round. SMUD solar economics are different from PG&E, and for most SMUD homeowners the bigger opportunity is the battery rebate of up to $10,000, not the export rate conversation.
See the SMUD rebate detailsAlso worth reading.
Home Battery
The NEM 3.0 fix. Tesla Powerwall 3 and Enphase IQ Battery 5P for PG&E and SMUD homes.
See options →Solar
We design solar for PG&E homes with NEM 3.0 in mind. System sized to maximize self-consumption.
See solar →PG&E Rate Hike
Rates up 104% since 2015. More increases locked in. How solar and battery changes the long-term math.
See the math →How It Works
$0 down lease or cash purchase. We model both on your bill. No same day pressure.
See both paths →NEM 3.0 questions
we hear every week.
What is NEM 3.0?
NEM 3.0, officially called the Net Billing Tariff, is PG&E's current solar rate for new installations since April 15, 2023. It replaced NEM 2.0. Export credits dropped by about 75%. Instead of receiving near-retail rate credits for exported power, you now receive Avoided Cost Calculator (ACC) values that average around $0.05 to $0.08 per kWh, while buying power back at $0.40 or more per kWh.
Does NEM 3.0 apply to SMUD customers?
No. NEM 3.0 is a PG&E program regulated by the CPUC. SMUD is a community-owned utility and runs its own Solar and Storage Rate, which pays a flat export credit year-round. SMUD customers are not affected by NEM 3.0.
I already have solar from before April 2023. Am I on NEM 3.0?
If your system got Permission to Operate before April 15, 2023, or your interconnection application was submitted before April 14, 2023 and PTO was issued before April 15, 2026, you are grandfathered on NEM 2.0 for 20 years from your PTO date. NEM 3.0 applies only to new solar installations after that cutoff.
Is solar still worth it on PG&E under NEM 3.0?
With a battery, yes. Without a battery, the economics are significantly weaker. A home battery lets you store midday production and use it at night, stopping you from exporting cheap and buying back expensive. Solar plus battery payback in PG&E territory typically runs 7 to 9 years. Solar only under NEM 3.0 often stretches to 10 to 13 or more years. We run the real numbers on your bill so you can see exactly where it lands for your home.
What if I add a battery to my existing NEM 2.0 solar?
Adding a battery to an existing NEM 2.0 system generally does not move you to NEM 3.0, but it depends on whether a new interconnection application is required. Call us at 916-461-9961 before adding a battery to an existing NEM 2.0 system. We'll walk you through the interconnection implications specific to your setup.
See what solar and battery
actually pencils on your bill.
We design for NEM 3.0 from the start. Real numbers on your real bill. Free consult, no obligation.