Why a Solar Battery is Essential Under NEM 3.0 in California
- Arundel Kramer
- Apr 15
- 3 min read
Updated: Oct 12
Introduction to NEM 3.0
For California homeowners, pairing solar with a battery under NEM 3.0 is now critical. NEM 3.0 (Net Energy Metering 3.0) took effect in April 2023. This policy dramatically changes how solar customers earn credits for excess energy. Without battery storage, homeowners face significantly lower compensation. This makes batteries a necessary investment for maximizing savings.
At Utah Clean Power, we are specialists in solar battery systems in Orange County. Our systems help homeowners in several ways:
✔ Reduce reliance on the grid – Store excess solar energy for later use
✔ Unlock long-term savings – Offset 70-120% of electricity bills
✔ Ensure energy security – Keep your power on during outages and blackouts
What is NEM 3.0?
The California Public Utilities Commission (CPUC) implemented NEM 3.0 to encourage the adoption of battery storage. Here are some of the key changes:
Lower export rates: Solar-only systems earn 75% less for excess energy compared to NEM 2.0.
Time-of-Use (TOU) adjustments: Higher peak rates (from 4 PM to 9 PM) offer more savings for battery users.
"Solar + storage" bonuses: Additional incentives for installing batteries; these bonuses decrease each year.
NEM 3.0 vs. NEM 2.0
Feature | NEM 2.0 | NEM 3.0 |
Energy Credits | Near retail rates | 25 - 30% of retail rates |
Payback Period | 5 - 7 years | 7 - 10 years |
Best Solution | Solar Panels | Solar + battery |
Understanding NEM 3.0's Impact on Savings
1. How Solar Batteries Create Higher Savings
Under NEM 3.0, savings differ significantly based on whether you use a battery.
Without a battery, excess energy is sold for $0.08 to $0.25/kWh, depending on your utility company.
With a battery, you can avoid purchasing grid power at $0.40 to $0.60/kWh during peak hours.
Real-World Example
Consider an Irvine homeowner utilizing Utah Clean Power’s battery system:
They can cut peak-hour usage by over 100%, resulting in approximately $1,800 in yearly savings.
They also earn over $1,200 in California incentives.
Plus, they have the added benefit of powering their home during Southern California Edison (SCE) blackouts.
2. Strategies to Maximize Savings Under NEM 3.0
To optimize savings, consider these strategies:
Install a battery: Our systems come with a 25-year warranty, guaranteeing performance.
Shift energy usage to off-peak hours: Use larger appliances during the day, particularly between 9 AM and 2 PM.
Enroll as soon as possible: Battery incentives in California decrease by 20% annually until 2028.
Why Choose Utah Clean Power for NEM 3.0 Solar Batteries?
As a trusted provider of solar battery systems in Orange County, we offer several advantages:
🔹 Industry-leading 25-year warranty (with an optional 10-year extension)
🔹 $0-down financing: This allows you to start saving without upfront costs.
🔹 Utility expertise: We develop optimized systems tailored to your location’s TOU rates.
🔹 Protection against blackouts: Keep your appliances running even when the grid goes down.
Frequently Asked Questions (FAQs)
Is solar still worth it under NEM 3.0?
Yes! If you pair solar with a battery, you can still achieve savings of 70-90% on your electric bill. Without a battery, the payback periods extend considerably.
Can I still get NEM 2.0?
Unfortunately, no. Those who did not apply before April 14, 2023 must adhere to NEM 3.0 policies.
Do I need a battery for NEM 3.0?
While it's not mandatory, it is highly recommended. Without a battery, you could see your savings drop by 40-50%.
In conclusion, investing in a solar battery under NEM 3.0 is not just a smart choice; it is essential for homeowners in California aiming for energy independence and significant savings on their utility bills.




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