Solar + Battery Storage: Why It's Now Essential in California Under NEM 3.0

In solar energy, as in life, timing matters — especially when the rules change. And with NEM 3.0 in California, the way homeowners get value from their solar systems has shifted significantly.

Gone are the days when a rooftop solar system alone could quickly pay for itself simply by exporting excess power to the grid. Today? If you want to unlock maximum savings, resilience, and energy independence, pairing your solar with smart battery storage isn't just an option — it's essential.

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What Changed Under NEM 3.0?

Under earlier versions of net energy metering (NEM 1.0 and NEM 2.0), solar customers in California could send excess solar energy back to the grid and receive credits at almost the full retail rate of electricity. That made solar exports extremely valuable — and helped systems pay for themselves quickly.

But with NEM 3.0, the credit you receive for exporting solar power is tied to a utility's avoided cost value, meaning the true cost savings the utility avoids by using your power. That value is significantly lower than retail rates — in many cases hundreds of percent less.

So what's the answer? It's not less solar — it's smarter solar.

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Why Battery Storage Matters More Than Ever

1. You Keep More of Your Solar Energy

Under NEM 3.0, exporting energy to the grid earns you limited credits. But your own electricity usage — especially during peak times — still costs a premium from utilities.

With a battery, you can store the excess solar power you generate instead of exporting it at low credits, and use it later — especially during:

• Evenings
• Peak demand periods
• Time-of-Use rate spikes

This means you're maximizing self-consumption — and that translates directly into bigger savings on your utility bill.

2. You Avoid High Time-of-Use Costs

California's utilities now use more complex time-of-use (TOU) rate structures, where electricity costs vary by hour and season.

A battery lets you:

• Store cheaper solar power generated midday
• Use it during expensive evening hours

…instead of buying pricey grid electricity. That difference multiplies your savings.

3. You Increase Your Home's Resilience

Blackouts happen. Wildfire risks happen. Weather surprises happen.

With a battery:

• Your essential circuits can stay powered during outages
• You have energy independence when it matters most
• You're less vulnerable to grid instability

That's not just financial value — it's peace of mind.

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How Batteries Improve Solar ROI Under NEM 3.0

Solar + Battery = Higher Self-Use + Lower Grid Dependence + Greater Long-Term Savings

Instead of getting deep credits for exports, you use more of your solar right when you need it most. That approach can often pay back faster than relying on export credits alone.

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FAQs: Solar + Battery Under NEM 3.0

Q: Do I have to get a battery with solar in California now?
A: Legally, no. But financially and strategically under NEM 3.0, a battery significantly improves your savings and turns solar into a more resilient system.

Q: Does a battery work during outages?
A: Yes — when properly configured, batteries can power essential circuits even when the grid is down.

Q: Will batteries get even cheaper?
A: Prices have been dropping over the years, and incentives are improving access — but waiting can mean missing out on today's savings and bill reductions.

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Final Thought: The Future Is Solar + Storage

Solar alone is still good. Solar + battery is now great.

NEM 3.0 turned a corner in California's energy landscape, but it didn't shut the door on solar's value. It opened a smarter path — one where we think holistically about how energy is generated, stored, and used.

If you want a personalized savings analysis, tailored to your home and usage patterns — I'd be honored to walk you through it.

Let's harness more of your sunshine… and keep more of your hard-earned dollars right where they belong — in your pocket. 🌞💡