What is California’s NEM 3.0 (Net Billing Tariff)?
California’s Net Metering 3.0 (officially called the Net Billing Tariff) fundamentally changed how homeowners with solar panels are credited by investor-owned utilities like Southern California Edison (SCE) and San Diego Gas & Electric (SDG&E).
Under older NEM 2.0 rules, excess solar electricity sent back to the grid was credited near full retail rates. Under NEM 3.0, the value of exporting solar power to the utility was reduced by approximately 75%.
Why Adding a Battery is Now the Smartest Investment
Instead of selling excess daytime solar energy to SCE or SDG&E for pennies, pairing solar panels with a modern battery storage system (such as Tesla Powerwall or Enphase IQ Battery) allows you to:
- Store Daytime Solar Energy: Capture clean electricity generated at noon.
- Avoid High Peak Utility Rates (4 PM – 9 PM): Power your home with stored battery energy when utility rates soar to 50¢–75¢ per kWh.
- 24/7 Outage & Blackout Protection: Keep lights, refrigerators, and medical equipment running during grid failures.
Estimated 25-Year Savings Breakdown
With California electricity rates rising by 8%–12% annually, an optimized solar + battery system protects your household budget against unpredictable utility hikes, generating an estimated $50,000 to $80,000+ in cumulative savings over the system’s lifespan.
Find Out Your Estimated Solar & Battery Savings
Request a customized solar savings analysis based on your average monthly electric bill.
Custom Battery Sizing
Our in-house licensed team analyzes your exact utility load to size the perfect system.
Call 619-436-1997