Educational Guide
Is Solar Worth It Under NEM 3.0?
Short answer: yes. Solar is very much worth it under NEM 3.0. What changed is not whether solar makes sense, but how the system has to be designed. Under NEM 3.0, solar panels need to produce energy all day and the battery needs to cover your home's evening usage, or you will still end up with a utility bill every month.
What NEM 3.0 actually changed
NEM 3.0 is California's latest net metering rule. It took effect in April 2023 and changed how solar homeowners are credited for power they send to the grid. Under the old rules, exports were credited at close to full retail rate. Under NEM 3.0, daytime solar exports are credited at much lower rates, often just a few cents per kWh.
That means solar without storage is now selling power cheap during the day and buying it back during the 4 to 9 p.m. peak window at 50 cents or more per kWh. The result is a much smaller bill reduction unless you store that daytime energy and use it at night.
This is why solar plus battery is the right setup under NEM 3.0. The battery stores your excess on the side of the house so you can power your home during peak hours instead of depending on the utility's highest priced power.
Why solar is still worth it
Utility rates in California are not going down. SCE and SDG&E consistently rank among the most expensive utilities in the country, and time of use pricing pushes the highest rates into the evening when solar panels are not producing. Batteries solve that.
When the system is designed correctly, solar plus battery puts you in control. You power your house from your roof during the day, store the excess on the side of the house, and use it at night. You are not relying on the utility's pricing, and you are as close to off grid living as you can be in California while still having the grid as a backup.
- Lower your bill: avoid expensive peak hour pricing
- Stay powered: use your own stored energy during outages and evening peak hours
- Lock in a rate: a PPA gives you a lower fixed rate for the power your roof and battery deliver
- 25 year warranty: panels, inverter, battery, monitoring, and labor are covered
What makes or breaks a NEM 3.0 system
The biggest mistake homeowners make is assuming any solar system will zero out their bill under NEM 3.0. It will not. The system has to be designed for the new rules.
- Production: the panels need to generate enough energy throughout the day to cover your usage and fill the battery
- Storage: the battery has to be sized for your actual evening and overnight usage, or you will still pull from the grid
- Load shifting: high consumption appliances like EV chargers, pool pumps, and AC need to run when solar is producing
- Partner: work with someone who understands how to design for NEM 3.0, not just install panels
If your battery is undersized, your settings are wrong, or your panels are not producing enough to refill the battery daily, you will still end up with a bill every month and be unhappy. Design is what separates a system that works from one that does not.
The PPA path under NEM 3.0
Roughly 90% of California installs today use a no upfront cost PPA. It is the cleanest way to get solar plus battery on your roof without a big capital outlay. You pay $0 down, then pay a lower fixed rate for the power your roof and battery produce. The system owner handles the equipment risk, the warranty, and the production guarantee.
A PPA is not a loan and it is not a purchase. You are changing your power provider from the utility to the solar system on your roof. Because the battery is included, the system is built for NEM 3.0 from day one.
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Get a system designed for NEM 3.0
Every house, every roof, and every utility bill is different. Send us your last 12 months of usage and we will design a solar plus battery system that actually works under NEM 3.0, so you can power your home from your roof and stop depending on the utility's peak pricing.