NEM 3.0: Solar Still Works.
Here's How.
California updated its solar billing program in 2023. There's been a lot of confusion about what it means for homeowners. The truth is simple: with the right system, homeowners can still offset nearly all of their electricity costs. Let us show you how.
GET A FREE CONSULTATIONFirst, Let's Clear Up the Confusion
Net Energy Metering (NEM) is the billing program from Southern California Edison that determines how you're credited when your solar panels produce more electricity than your home uses.
During the day, your panels make power. Whatever your home doesn't use goes back to Edison's grid, and you get a credit on your bill. That credit is what helps shrink your monthly payment.
The answer is yes — when your system is designed the right way.
How We Got Here
California's solar billing has gone through three versions. Here's a quick breakdown.
NEM 1.0
The first net metering program. Homeowners got a full one-to-one credit for every kilowatt-hour of solar energy sent back to the grid. Solar panels alone could offset nearly all of your electric bill. Homeowners on NEM 1.0 are still grandfathered in today.
NEM 2.0
Very similar to NEM 1.0. Credits were still close to one-to-one, with small fees added. Solar panels alone still worked great to offset your bill. This was the program available until April 2023. Homeowners on NEM 2.0 are grandfathered in for 20 years.
NEM 3.0 (Current Program)
The credit for sending solar energy back to the grid was reduced. But here's the important part: by pairing solar with a battery, homeowners store their energy and use it during Edison's most expensive hours (4–9 PM) instead of sending it to the grid. The result? You can still offset nearly all of your electricity costs.
How Solar + Battery Gets It Done
Under NEM 3.0, the winning strategy is keeping your solar energy instead of giving it to Edison. A battery makes that possible.
Send Energy to Edison, Get a Credit
Under the old programs, your panels made energy during the day and you sent the extra to the grid. Edison gave you a full credit. That worked great. Under NEM 3.0, that credit is lower — so this approach alone doesn't go as far.
Store Your Energy, Use It When It Counts
With a battery, you keep your solar energy and use it between 4 PM and 9 PM — when Edison charges the most. You're not relying on credits from the grid. You're powering your home with your own stored energy for free. That's how you take control of your bill.
Panels Make Power
Your solar panels generate energy during the day while the sun is shining.
Battery Stores It
Instead of sending extra power to Edison, your battery stores it for later.
Discharge 4–9 PM
During peak hours your home runs on stored battery power, not the grid.
Full Backup Power
If the grid goes down, your Powerwall keeps your entire home running.
Already Have Solar on Your Home?
If you have an existing solar system — whether you installed it or it came with the house — you're likely on NEM 1.0 or NEM 2.0. That means you're grandfathered into the better credit rates for 20 years. That's great news.
But maybe your true-up bill has gone up over the years, and you're wondering why. Here's what happened: Edison changed when peak hours are.
When many existing solar systems were first installed, Edison's peak hours were during the daytime — when your panels were generating the most power. Your system was producing electricity during the most expensive hours, and with one-to-one credits, everything balanced out perfectly.
Then Edison shifted peak hours to 4 PM to 9 PM — evening hours when the sun is going down or already gone. Your panels aren't producing during that window, but that's when Edison charges the most. So now you're buying expensive electricity in the evening that your solar system can't offset. That's where the true-up bill comes from.
A battery fixes this. It stores your solar energy during the day and discharges it during those peak evening hours — the exact hours that are causing your true-up bill. And adding a battery does not change your NEM status.
A quick note: Even with the best solar and battery system, Edison will still charge a small monthly amount for service fees, taxes, and non-bypassable charges (NBCs). Every Edison customer pays these — they can't be avoided with solar. But we're talking about a minimal amount compared to what you're paying now.
1 Tesla Powerwall 3
If Edison is sending you a true-up bill of around $1,800 per year, adding one Powerwall can offset that true-up. It charges from your solar during the day and discharges during peak hours (4–9 PM) — covering the exact gap that's causing your true-up.
2 Tesla Powerwall 3
If your true-up bill from Edison is around $3,500 per year, two Powerwalls give you enough storage capacity to cover that higher usage. Both batteries charge from your existing solar and discharge during peak hours — offsetting your true-up.
What You Can and Can't Add
Adding a battery keeps your NEM status. You can add a Tesla Powerwall to your existing system and stay on NEM 1.0 or NEM 2.0. Your grandfathered rate is not affected. This is the smartest upgrade available to you right now.
Adding solar panels beyond 1 kW or 10% of your system moves you to NEM 3.0. If you're thinking about expanding your panels, talk to us first so we can walk through your options and make sure you don't lose your favorable rate.
What If My True-Up Bill Is Over $4,000?
When a true-up bill climbs above $4,000 per year, it usually means your home is using more electricity than your current solar system was designed to produce. The batteries help with the peak-hour problem, but if your existing panels simply aren't generating enough energy to keep up with your total usage, batteries alone can't close that gap — there's not enough solar energy during the day to fully charge them and cover everything your home needs.
The good news: we can still drastically reduce your electric bill. It means we need to add solar panels along with batteries. Yes, adding panels will move your system to NEM 3.0 — but when the system is designed correctly with both solar and battery storage, NEM 3.0 still works and you can offset nearly all of your electricity costs.
Here's How We Design It Right
When your usage exceeds what batteries alone can handle, we go through a detailed process to make sure your new system offsets as much of your bill as possible:
We identify your existing system. We find out exactly what solar panels and inverter you have, which tells us how much energy your current system produces in a year.
We pull your SCE Green Button data. This is the detailed usage data from your Edison account. Combined with your utility bill, it shows us exactly how much energy your home uses and when you're using the most.
We calculate the gap. By comparing what your current solar produces vs. what your home actually uses, we know exactly how much additional solar and battery storage you need.
We build a system that covers 100% of your usage. The new solar panels produce exactly what you need, the batteries charge during the day and discharge during peak hours (4–9 PM), and your electricity costs drop to just the minimum service fees and taxes that Edison charges every customer — even on NEM 3.0.
Every situation is different, and that's why a proper consultation matters. We'll look at your current system, your Edison bill, and your usage data to give you a clear picture of exactly what it takes to offset your electricity costs — whether that's batteries only or a full solar + battery upgrade.
Every System Includes Whole-Home Backup
A battery doesn't just save you money — it protects your family. When the grid goes down, your Tesla Powerwall kicks in instantly and keeps your entire home powered with no interruption.
With power shutoffs, extreme heat events, and wildfire season becoming the new normal in Southern California, backup power gives you one less thing to worry about.
Instant switchover — no delay when the grid goes down
Powers your entire home — lights, fridge, AC, everything
Monitor everything from the Tesla app on your phone
Tesla Certified Installation by Pell Solar
Let's Talk About Your Home
Whether you're going solar for the first time or adding a battery to an existing system, we'll walk you through your options. No pressure, no jargon.
