Question 1

What is NEM 3.0 and how does it affect my solar payback?

Accepted Answer

NEM 3.0 (officially the Net Billing Tariff) is California's solar export rule effective April 2023. It pays roughly 75% less for energy your panels send to the grid than the old NEM 2.0 program did. Solar still pays back in 7–9 years for most California homes, and pairing solar with a battery can shorten that to 5–7 years by storing excess production for evening use.

Question 2

Is solar still worth it in California under net billing?

Accepted Answer

Yes. Even with reduced export credits, California's high utility rates (PG&E and SCE both raised rates again in 2025) mean solar offsets are still very valuable. The math now favors self-consumption: producing energy and using it on-site, often with a battery to time-shift production into peak evening hours.

Question 3

Do I need a battery with solar in 2026?

Accepted Answer

For most NEM 3.0 customers, yes — a battery is what makes the financial case work. Without a battery, midday solar production is exported at low avoided-cost rates (often $0.05–0.08/kWh). With a battery, you store that production and use it during evening peak hours when retail rates exceed $0.50/kWh in some PG&E plans.

Question 4

How big a battery do I need (kWh sizing)?

Accepted Answer

Most California homes need 10–20 kWh of usable battery capacity to cover evening loads and a partial backup overnight. Whole-home backup typically requires 20–30+ kWh. Sizing depends on your average daily kWh usage, peak loads (HVAC, EV charger), and whether you want full backup or just essentials.

Question 5

Will my battery keep my home running during a PSPS or blackout?

Accepted Answer

Yes, when properly configured. A battery with backup capability isolates from the grid during an outage and powers your designated backup loads (or whole home, depending on system size). Most California homes can run essentials — refrigerator, lights, internet, AC — for 12–24 hours on a single 13.5 kWh battery, longer when paired with daytime solar recharging.

Question 6

How does the 30% federal tax credit apply to batteries?

Accepted Answer

The Residential Clean Energy Credit (Section 25D) covers 30% of the cost of solar panels AND standalone or paired batteries with at least 3 kWh of capacity. There is no cap. The credit applies to the year you place the system in service. Consult a tax professional for your specific situation.

Question 7

What's the SGIP rebate and do I qualify?

Accepted Answer

SGIP (Self-Generation Incentive Program) is a California rebate that pays per-kWh of installed battery capacity. General Market customers currently see lower payments as the program is heavily subscribed; Equity and Equity Resiliency tiers (low-income or wildfire-risk areas) can cover most of the battery cost. We'll check your address against the program tier when we design your system.

Question 8

Can I add a battery to my existing solar system?

Accepted Answer

Yes. Most existing solar systems can be retrofitted with a battery using either an AC-coupled battery (like Tesla Powerwall 3 or Enphase IQ Battery 5P) or a DC-coupled solution. Adding a battery to an existing NEM 2.0 system does NOT trigger a switch to NEM 3.0 — your grandfathered NEM 2.0 status is preserved.

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