NEM 3.0 — Net Billing Tariff
Also known as: Net Billing TariffNBTNEM 3California Net BillingNet Energy Metering 3.0
NEM 3.0 is California's current solar export compensation rule, technically called the Net Billing Tariff (NBT). It governs what your utility pays you for solar power you send back to the grid. Adopted by the California Public Utilities Commission (CPUC) under Decision D.22-12-056 in December 2022, it took effect for new solar interconnection applications on April 15, 2023.
Under the prior rule (NEM 2.0), exported solar power was credited at roughly $0.23–$0.30/kWh — close to the full retail rate. Under NEM 3.0, exports are credited at the "avoided cost" rate, currently around $0.05–$0.08/kWh depending on time of day and season. That's roughly a 75% reduction in export value.
PG&E residential rates are around $0.42/kWh in 2026. Under NEM 2.0, every kWh your panel exported was worth roughly $0.23–$0.30/kWh — close enough to retail that solar-only paid back in 5-7 years. Under NEM 3.0, exporting at $0.05–$0.08/kWh while buying at about $0.42/kWh means the math shifts: solar-only payback stretches to 10-12 years, but solar + battery payback stays around 7-9 years because the battery lets you self-consume your own production at the retail rate instead of dumping it to the grid at pennies.
We don't sell standalone solar under NEM 3.0 unless the homeowner already owns a battery or is willing to add one. The economics just don't work without storage. We're transparent about this with every solar consultation — it's not a sales tactic, it's the actual reality of California's current rules.
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