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California NEM 3.0 Solar Calculator

Calculate your solar savings under NEM 3.0. Select PG&E, SCE, or SDG&E — see export credits, battery storage value, NEM 2.0 comparison, and 25-year payback.

Your utility and system
$
kW
%
NEM 3.0 solar economics
$1,776/yr solar value  |  8.8 yr payback
Annual solar production11,242 kWh/yr
Self-consumed solar value$1,439/yr (@ $0.32/kWh)
Exported solar value (NEM 3.0)$337/yr (@ $0.05/kWh)
Total annual solar value (NEM 3.0)$1,776/yr
NEM 2.0 would have earned$3,283/yr (for comparison)
System cost (before ITC)$22,400
Net cost after 30% ITC$15,680
Payback period (NEM 3.0)8.8 years
25-yr net profit (NEM 3.0)$24,942
NEM 2.0 grandfathering: Systems interconnected before April 15, 2023 keep NEM 2.0 rates for 20 years. Under NEM 3.0, a battery is highly recommended — it can add $2,000-4,000/yr in value by maximizing self-consumption.
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Extended AnalysisNEM 3.0 export values, battery optimization & NEM 2.0 comparison
kW
kWh
kWh
NEM 3.0 export rates vary significantly by hour. Daytime solar production (amber) earns only $0.05-0.06/kWh. Evening peak hours (teal) earn $0.10-0.20/kWh — this is why batteries are critical under NEM 3.0.PG&E E-TOU-D retail rate: $0.44/kWh.
$0.04$0.08$0.12$0.1612am3am6am9am12pm3pm6pm9pmHour of Day
Solar production hours (low export value $0.05-0.06/kWh)Evening peak (higher export value $0.10-0.20/kWh)Overnight (minimal export)
Self-consumption value
$3,224
Export credit value
$402
Total annual savings
$3,627

How to Use This Calculator

Enter your bill and select your utility

Start with your average monthly electricity bill. This determines your annual consumption and is used to size the solar offset. California has three large investor-owned utilities — PG&E, SCE, and SDG&E — each with different NEM 3.0 export rates. SDG&E pays the highest export credits (~$0.08/kWh), PG&E the lowest (~$0.05/kWh). All are dramatically lower than the old NEM 2.0 near-retail export rates of $0.28-0.35/kWh.

Enter system size and battery option

Enter your proposed solar system size in kW. Under NEM 3.0, oversizing a system without battery storage is counterproductive — excess solar is exported at $0.05-0.08/kWh while you pay $0.30-0.55/kWh at night. Adding a battery changes this completely: stored solar used at night avoids expensive TOU peak rates, making battery storage the most important decision under NEM 3.0.

Estimate your self-consumption percentage

Self-consumption is the percentage of solar production used directly in your home (not exported). Without a battery, expect 30-40% self-consumption — most solar production happens between 10am-3pm when many families are away. With a 10kWh battery, self-consumption rises to 60-70%. With 20kWh, 75-85%. Higher self-consumption is essential under NEM 3.0 because exported power earns so little.

The Formula

Annual Solar Production = System kW × 1000 × PSH × 365 × 0.80 ÷ 1000 Self-Consumed kWh = Annual Production × Self-Consumption % Exported kWh = Annual Production × (1 - Self-Consumption %) NEM 3.0 Self Value = Self-Consumed kWh × Retail Rate NEM 3.0 Export Value = Exported kWh × Export Rate ($0.05-0.08/kWh) Battery Added Value = Battery kWh × 365 × 0.70 × (Retail Rate - Export Rate) Total NEM 3.0 Value = Self Value + Export Value + Battery Value Payback = Net System Cost (after 30% ITC) ÷ Total Annual Value

California average PSH of 5.5 is used. Battery added value assumes 70% daily round-trips on average — the battery charges from excess daytime solar and discharges in the evening, converting low-value exports into high-value self-consumption. The 30% federal ITC (Investment Tax Credit) is applied automatically. 25-year NPV uses 3% discount rate and 3% annual rate escalation.

Example

Sarah — $200/month PG&E bill, 7kW system with 10kWh battery

Sarah is a PG&E customer with a $200/month electricity bill considering a 7kW solar system. She wants to compare going solar without a battery vs. adding a 10kWh battery under NEM 3.0.

Monthly bill$200/mo (PG&E)
System size7kW solar
NEM 3.0 export rate$0.05/kWh (PG&E)
Retail rate$0.32/kWh (PG&E)

Without battery (40% self-consumption)

Annual solar production~11,088 kWh/yr
Self-consumed value~$1,422/yr
Export value (NEM 3.0)~$333/yr
Total annual value~$1,755/yr
System cost (after ITC)~$15,680
Payback~8.9 years

With 10kWh battery (65% self-consumption)

Battery added value+~$2,300/yr
Total annual value~$4,055/yr
Total cost (after ITC)~$21,980
Payback with battery~5.4 years

The battery actually shortens Sarah's payback period from 8.9 years to 5.4 years under NEM 3.0. This is the opposite of older solar economics — under NEM 2.0 where exports earned near-retail rates, batteries added cost without proportional benefit. Under NEM 3.0, a battery is the smartest investment a California solar customer can make.

FAQ

NEM 3.0 (Net Energy Metering 3.0) is California's current solar billing policy, effective April 15, 2023. The major change: export credits dropped from near-retail rates (~$0.28-0.35/kWh under NEM 2.0) to avoided-cost rates ($0.05-0.08/kWh under NEM 3.0) — a 75-80% reduction in value for exported solar. Solar systems that over-produce relative to what the home uses in real-time now earn far less. The policy strongly incentivizes batteries to maximize self-consumption of solar energy rather than exporting it.
Yes — solar is still worth it in California under NEM 3.0, especially with a battery. California has the highest electricity rates in the continental US ($0.29-0.55/kWh depending on utility and TOU), so every kWh of solar used directly avoids very expensive grid power. The key shift: NEM 3.0 rewards self-consumption over export. A properly sized system (not oversized) with adequate battery storage typically achieves payback in 5-8 years and generates significant profit over 25 years. Without a battery, payback extends to 10-14 years.
Battery storage transforms NEM 3.0 economics. Here's why: under NEM 3.0, excess solar exported earns $0.05-0.08/kWh, but you buy back power in the evening at TOU peak rates of $0.44-0.55/kWh. A battery intercepts that "free" excess solar, stores it, and discharges it in the evening — converting a $0.05 export into a $0.44 self-consumption credit. The arbitrage is $0.35-0.45/kWh. A 10kWh battery cycling daily adds roughly $1,200-1,600/year in value in this way. Most California solar installers now quote solar+storage as the default package under NEM 3.0.
Systems that received Permission to Operate (PTO) or had a complete interconnection application submitted before April 15, 2023, are grandfathered under NEM 2.0 for 20 years from their interconnection date. This means they continue receiving near-retail export credits until approximately 2043. NEM 2.0 grandfathered customers have significantly better economics than new NEM 3.0 customers — a 7kW system might earn $3,000-4,000/yr in export credits vs. $300-500/yr under NEM 3.0. If you're on NEM 2.0, protect your grandfathered status and do not modify your system without consulting your utility first, as modifications can trigger NEM 3.0 reclassification.
Under NEM 3.0, right-sizing your system is more important than ever. The old strategy of oversizing to maximize exports no longer works — exports only earn $0.05-0.08/kWh. The optimal strategy is to size solar to cover your annual consumption (not exceed it) and add enough battery to shift solar production to peak-TOU hours. A common rule of thumb: size solar to cover 80-100% of annual consumption, add 10-20kWh of battery per 5kW of solar. Oversizing solar without battery just means more low-value exports. The CPUC recommends customers work with their utility to determine optimal sizing.

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