California NEM 3.0 Laws & Utility Buyback Explained
If you are researching solar in California, you have undoubtedly heard of NEM 3.0 (officially known as the Net Billing Tariff). Enacted by the CPUC in 2023, this policy fundamentally changed how PG&E, SCE, and SDG&E credit homeowners for solar power.
The End of 1:1 Retail Net Metering
Under the old NEM 2.0 rules, if you sent 1 kWh of excess solar power to the grid, the utility credited you at the full retail rate (e.g., $0.40). Under NEM 3.0, export rates were slashed by roughly 75%. If you send power to the grid during the middle of the day, you are credited at a highly reduced "avoided cost" rate (often around $0.05 to $0.08 per kWh).
The Battery Storage Solution
Because export rates are so low, the goal is no longer to sell power back to the grid. The goal is to store it. At SunBeam Innovations, we engineer NEM 3.0-compliant systems using advanced battery storage. Your panels charge the battery during the day, and your home pulls from that battery during expensive evening Time-of-Use (TOU) periods, maximizing your savings and minimizing your reliance on the grid.
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