Quick Summary
NEM 3.0 is California's Net Billing Tariff (NBT) implemented in April 2023. It reduced daytime export credits by approximately 75% for PG&E, SCE, and SDG&E, making solar-only systems uneconomical and rendering battery storage necessary.
Under NEM 3.0, you are credited for exports based on "avoided cost" rates rather than retail rates. Since daytime credits are low, you must store your power in a battery and discharge it during peak evening hours (4 PM to 9 PM) to maximize savings.
How Batteries Solve the NEM 3.0 Payback Gap
| Configuration | Typical Export Credit | Payback Period | Bill Offset |
|---|---|---|---|
| Solar Only (NEM 3.0) | ~5¢ / kWh | 13 – 15 Years | 30% – 40% |
| Solar + Battery (NEM 3.0) | Dispatched to load (self-consume) | 7 – 9 Years | 80% – 95% |
Frequently Asked Questions
Is solar still worth it in California?
Yes, but only if you pair it with a smart battery backup like the Tesla Powerwall 3 to avoid exporting low-value power.