What Is NEM 3.0?

California’s updated Net Energy Metering (NEM) 3.0 policy, effective April 15, 2023, changes how homeowners are credited for excess solar energy sent to the grid. Under this new system—also called the Net Billing Tariff (NBT)—export rates are lower than before, making solar battery storage more valuable than ever.

How Solar Credits Have Changed

Previously, under NEM 2.0, homeowners earned bill credits at nearly the full retail electricity rate for excess solar energy. With NEM 3.0, those credits are now based on the utility’s “avoided cost” rate, which is significantly lower.

The key takeaways:

Lower export rates – Excess energy is worth less than before.
Time-based pricing – Rates vary by the hour, day, and season (up to 576 different rates).
Higher peak pricing – Some evening hours in the summer may have better credit rates.

Why Battery Storage Is Now More Important Than Ever

Since sending excess solar power to the grid is now less profitable, the best way to maximize savings is to store solar energy for use when rates are highest. A battery system lets you:

Store solar energy during the day when rates are low.
Use stored energy in the evening when electricity is more expensive.
Sell energy back to the grid at peak times to earn higher credits.

Smart Energy Management: The Key to Savings

Modern battery systems can automate energy usage to help homeowners get the most out of their solar investment. With smart software, your system can:

Analyze your household’s energy use and adjust automatically.
Predict solar production and store energy when it’s most valuable.
Optimize when to use vs. sell energy, so you maximize bill savings.

The Bottom Line

While NEM 3.0 reduces export credits, solar is still a smart investment—especially when paired with battery storage. With the right setup, you can lower your energy bills, increase your energy independence, and make the most of your solar power.

Ready to future-proof your home’s energy? Contact us today to learn how Symmetric Energy can help you take control of your power.

Understanding California's NEM 3.0: What It Means for Residential Solar Customers