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10/23/3035
How to Prepare Your Home Electrical System for an EV Charger
Electric vehicles (EVs) are no longer the future — they’re the present. Whether you drive a Tesla, Rivian, or Chevy Bolt, charging your car at home is the most convenient and cost-effective way to stay powered.
But before you schedule an installation, it’s important to make sure your home’s electrical system can safely handle the extra load. Installing a Level 2 charger (the most common residential choice) requires more than just an outlet — it often needs a dedicated circuit, permit approval, and sometimes a main panel upgrade.
Here’s what every Bay Area homeowner should know before adding an EV charger.
Step 1: Check Your Electrical Panel Capacity
Your electrical panel — also called your main service panel — is the control center for your home’s power. It distributes electricity to all your appliances, outlets, and lighting circuits.
Most modern EV chargers draw between 30 and 50 amps of continuous power. If your home has a 100-amp panel, that’s often not enough to safely support an additional circuit for a Level 2 charger.
Look inside your panel:
If it’s labeled 100A, you may need a 200A main panel upgrade.
If you see an older brand like Federal Pacific or Zinsco, it’s likely time for replacement regardless of charger installation.
At Ally Electric & Solar, our licensed electricians perform a load calculation to determine if your home’s system can handle the added demand.
Step 2: Choose the Right Charger Type
There are two primary residential charger types:
Charger LevelVoltageTypical Charging SpeedCircuit RequiredLevel 1 120V (standard outlet)3–5 miles of range per hourNone (uses standard plug)Level 2 240V (dedicated circuit)25–40 miles of range per hour40A–60A breaker
For daily convenience and faster charging, most homeowners opt for Level 2 chargers — such as the Tesla Wall Connector, ChargePoint Home Flex, or Emporia EV Charger.
These require professional installation and a dedicated 240V circuit, which must comply with California Electrical Code and PG&E interconnection standards.
Step 3: Verify Permitting and Utility Requirements
Installing an EV charger isn’t just about plugging in — it’s an electrical upgrade that requires city permitting and sometimes coordination with PG&E.
Your installer will handle the permit application, inspection scheduling, and PG&E notification (if applicable).
At Ally, we include these services in every installation — ensuring your system passes inspection and qualifies for rebates such as:
PG&E EV Charge Rebate
California Clean Vehicle Rebate (CVRP)
These incentives can help offset installation costs for qualified homeowners.
Step 4: Plan for Future Energy Upgrades
If you’re considering solar panels or a home battery system in the future, it’s smart to plan your EV charger installation with expansion in mind.
A properly sized 200-amp main service panel not only supports your EV charger but also prepares your home for:
Solar PV system integration
Battery backup (e.g., Tesla Powerwall, Enphase IQ Battery, FranklinWH)
Heat pump or induction appliances
By upgrading once, you avoid costly rework later — making your home fully “electrification-ready.”
Step 5: Schedule a Professional Inspection
Before installation, a licensed electrician should evaluate:
Your panel’s amperage rating and available breaker space
Wiring condition and grounding
Distance between the panel and the parking area
Site feasibility for conduit and charger placement
Ally Electric & Solar provides a home inspection to assess all of the above. Once your system is approved, we handle the installation, permitting, and setup — so you can start charging confidently.
Power Your Drive with Ally Electric & Solar
Installing an EV charger is one of the best upgrades you can make for convenience, sustainability, and long-term savings.
At Ally Electric & Solar, we specialize in EV charger installations, main panel upgrades, and solar + battery systems across the Bay Area. Our team handles every step — design, permitting, installation, and PG&E coordination — ensuring your home is safe, efficient, and ready for the road ahead.
Schedule Your Free EV Charger Consultation
Ally Electric & Solar, Inc.
California Licensed Electrical Contractor — License #806465
Serving the Greater San Francisco Bay Area
info@allyelectricandsolar.com
(510) 559-7990
www.allyelectricandsolar.com
Book your free EV charger inspection today and we’ll help you choose the right charger, verify your electrical capacity, and provide a no-obligation quote.
10/02/2025
PG&E NEM 3.0 and Solar Batteries: How California Homeowners Can Maximize Savings in 2025
If you live in Northern California, you’ve probably heard of PG&E’s NEM 3.0 program and the changes it brought to solar customers in 2023. Many homeowners are now asking the same question: Is solar still worth it in 2025?
The short answer is yes — but the way you design your system matters more than ever. Under NEM 3.0, solar plus a battery is the winning combination for lowering bills, improving energy independence, and protecting your home during outages.
In this guide, we’ll break down what changed, how it affects your PG&E bill, and why batteries like the Tesla Powerwall 3, Enphase IQ 10C, and FranklinWH aPower are becoming essential for California homeowners.
What Changed Under PG&E’s NEM 3.0?
Under the previous program (NEM 2.0), homeowners earned near-retail credit for each kilowatt-hour they exported back to the grid. That meant solar panels alone could dramatically cut electricity bills — even without a battery.
With NEM 3.0, the value of exported electricity has been reduced by roughly 75% on average. Instead of being credited at close to the retail rate, exported power is compensated at the “avoided cost” rate, which is based on wholesale electricity prices.
Daytime exports (midday) are worth much less.
Evening energy (4 p.m. – 9 p.m.) is expensive, and that’s when solar panels aren’t producing.
This shift makes it harder to save money with solar panels alone, because you’re sending energy to the grid when it’s cheap and buying energy back when it’s expensive.
Why Batteries Are the Key to Savings
The new rules change the math — but they also highlight the value of solar battery storage. A battery allows you to:
Store excess solar power during the day.
Use it in the evening when PG&E’s rates are highest.
Reduce exports at low daytime rates.
Cut peak demand charges.
In other words, batteries help you keep more of the energy you generate, shifting your savings from export value to self-consumption value.
Even better: batteries provide backup power during blackouts — something many Bay Area homeowners worry about, especially after recent wildfire seasons and earthquakes.
Incentives in 2025: ITC + SGIP
The cost of adding a battery has dropped significantly thanks to federal and state incentives.
Federal Tax Credit (ITC):
The 30% credit applies to solar and batteries through at least 2032.
Stand-alone batteries also qualify (even if you already have solar).
California SGIP (Self-Generation Incentive Program):
Rebates are still available in 2025, especially for homes in fire-threat or outage-prone areas.
Typical savings: $2,000–$5,000 per battery.
Together, these incentives can cut the upfront price of a battery system by 30–40%, making it a financially smart move under NEM 3.0.
Real-World Example: Bay Area Home
Let’s look at a simple case study.
System size: 7 kW solar + 10 kWh battery
Without battery: Home exports most power at midday when rates are low. Monthly bill reduction: ~40%.
With battery: Stored energy offsets evening rates (often $0.40–$0.50/kWh). Monthly bill reduction: ~65–70%.
Over a 10-year span, the homeowner saves thousands more by adding a battery. And during PG&E outages, the battery provides reliable backup for lights, refrigeration, internet, and even essential medical devices.
Choosing the Right Battery: Tesla, Enphase, or FranklinWH?
At Ally Electric & Solar, we install several top battery brands. Each has strengths depending on your home’s needs.
Tesla Powerwall 3
High capacity (~13.5 kWh per unit).
Built for whole-home backup.
Sleek design, widely recognized.
Enphase IQ Battery 10C
Modular — you can add units over time.
Works seamlessly with Enphase microinverters.
Good option for homes starting with a smaller system.
FranklinWH aPower + aGate
Strong load management features.
Robust warranty and growing popularity in California.
Flexible for both new installs and retrofits.
Which is best? It depends on your household usage, backup needs, and budget. Our team helps homeowners compare options with clear side-by-side analysis.
Beyond Savings: Energy Independence and Resilience
While much of the NEM 3.0 discussion is about dollars and cents, the bigger picture is energy independence.
Batteries make you less dependent on PG&E’s shifting rate structures.
You gain peace of mind during outages — whether from wildfires, storms, or earthquakes.
Electrification trends (EVs, heat pumps, induction stoves) mean households will rely even more on electricity. Pairing solar with storage ensures you’re ready for that future.
Final Thoughts
PG&E’s NEM 3.0 has changed the landscape, but it hasn’t made solar a bad investment. It’s simply shifted the smart strategy from solar alone to solar plus battery storage.
With the 30% federal tax credit and SGIP rebates still in place, 2025 is an excellent year to invest. By adding storage, you can:
Maximize bill savings.
Gain resilience during outages.
Future-proof your home for the electrification era.
Call to Action
At Ally Electric & Solar, we specialize in designing solar + battery systems tailored to California homes. Whether you’re considering the Tesla Powerwall 3, Enphase IQ 10C, or FranklinWH aPower, our team can help you choose the right solution for your budget and lifestyle.
Contact us today for a free consultation and see how much you can save under PG&E’s new rules.
9/30/2025
Heat Pumps and Solar PV + Energy Storage: Are They a Good Match?
In recent years, homeowners across California and beyond have been exploring how to cut energy costs and reduce carbon emissions. Two technologies often come up in the same conversation: heat pumps and solar photovoltaic (PV) systems with energy storage (ESS). But how do these solutions relate, and is combining them really the right move for every household?
What Are Heat Pumps?
A heat pump is an electric appliance that can both heat and cool a home by transferring heat rather than generating it directly.
Heating mode: extracts heat from the outside air (even in cold weather) and moves it indoors.
Cooling mode: works like an air conditioner, removing heat from indoors and releasing it outdoors.
Because they move heat instead of producing it, heat pumps can achieve efficiencies of 200%–400%, compared to around 90% efficiency for electric resistance heaters or gas furnaces.
How Much Electricity Do Heat Pumps Use?
Electricity consumption depends on:
System size (measured in tons or BTUs).
Climate zone (mild Bay Area vs. colder mountain regions).
Home insulation and ducting.
On average:
A typical residential heat pump uses 2,000 to 4,000 kWh per year for heating and cooling.
That translates to 15%–30% of a household’s total annual electricity use in California.
In colder climates, usage can be higher, especially if backup resistance heating is needed.
For comparison, the average California household consumes about 6,500–7,000 kWh annually (without electric vehicles or large electrification loads). Adding a heat pump can increase that number by 25%–50%, depending on usage.
Why Pair Heat Pumps With Solar + ESS?
Offset Higher Electricity Demand
Without solar, switching from gas heating to a heat pump can cause a noticeable jump in your electric bill.
A properly sized solar PV system can offset most or all of the added consumption.
Take Advantage of Efficiency
Heat pumps are already efficient compared to gas furnaces or electric resistance heating.
Running them on solar power makes heating and cooling nearly emissions-free.
Resiliency With Storage
Energy storage systems (like Tesla Powerwall or Enphase IQ Battery) allow homes to keep heating or cooling during outages.
In California, where blackouts and Public Safety Power Shutoffs (PSPS) are a concern, this adds peace of mind.
Peak Shaving
Many utilities have time-of-use (TOU) rates, with higher costs in the late afternoon/evening.
Pairing a heat pump with storage lets homeowners shift usage and avoid peak pricing.
Is It Always a Good Solution?
It depends on your situation:
Good fit if:
You live in a region with mild winters (like most of California).
You’re planning to replace aging HVAC equipment or gas furnaces.
You want to reduce reliance on fossil fuels and improve indoor comfort.
You already have or plan to install solar PV with sufficient capacity.
Potential challenges:
In very cold climates, heat pumps may need backup resistance heating, which increases energy use.
Upfront costs for both a heat pump and a solar + storage system can be significant.
System sizing is critical — undersized solar arrays may not cover the added load.
The Bottom Line
Heat pumps and solar PV + ESS are complementary technologies. Heat pumps make homes more energy-efficient and all-electric, while solar plus storage ensures that extra demand is met sustainably and resiliently. For many California homeowners, combining the two is a smart long-term strategy — but the right solution depends on climate, home size, and budget.
Before making the switch, it’s best to consult with both a licensed HVAC contractor and a solar professional who can model your home’s projected energy use and recommend the right system size.
9/24/2025
Earthquakes Remind Us: Why Solar + Battery Systems Are Essential for Bay Area Homes
Just a few days ago, the Bay Area was shaken by a 4.3-magnitude earthquake near Berkeley/Pinole. While this was a moderate event, it served as an important reminder that we live in an earthquake-prone region where power outages can occur at any time. As an electrical engineer working with residential energy systems, I see firsthand how families are left vulnerable when the grid fails — and why solar panels combined with energy storage systems (ESS) are no longer a luxury, but a necessity.
How Earthquakes Affect the Grid
During an earthquake, even a moderate one:
Utility infrastructure is vulnerable. Power lines, substations, and transformers can be damaged, leaving neighborhoods in the dark.
Gas pipelines pose safety risks. This makes electric cooking and heating a safer and more reliable option during emergencies.
Restoration can take days. Depending on the severity, PG&E crews may need hours — even weeks — to restore service to all customers.
For homeowners, that means no lights, no internet, no heating, and no way to safely store food unless they have a backup system.
Why Energy Storage Systems (ESS) Matter
When paired with solar panels, battery storage systems like the Tesla Powerwall 3, Enphase IQ, or FranklinWH aPower give families independence from the grid.
From an engineering perspective, here’s what these systems can provide after an earthquake:
2+ Weeks of Critical Power: A well-sized battery can keep essential loads running — refrigeration, lighting, phone charging, internet routers, and medical equipment — for up to two weeks when managed carefully.
Safe Cooking & Heating: Electric induction cooktops, microwaves, or small space heaters can run off stored solar power, eliminating reliance on gas.
Automatic Isolation from the Grid: Modern ESS units include rapid shutoff and islanding capability, which means when the grid goes down, your home seamlessly switches to backup power.
Recharge Daily with Solar: Unlike a gas generator that needs constant refueling, a solar + battery system recharges every morning — ensuring sustainability for as long as the grid is down.
Real-World Resilience for Bay Area Families
Living in the Bay Area means preparing for the unexpected. With earthquakes, wildfires, and storms becoming more common, resilience isn’t optional — it’s essential.
Families who invest in solar + battery systems are not just saving on monthly utility bills; they are also investing in:
Peace of mind during natural disasters
Energy independence from PG&E’s outages and rate hikes
A cleaner, safer alternative to gas generators
Final Thoughts
The Berkeley/Pinole earthquake is a reminder that the grid is fragile, but your home doesn’t have to be. With solar panels and a properly designed energy storage system, you can keep life moving — cooking meals, heating your home, and staying connected — even when the lights go out across the city.
At Ally Electric and Solar, we specialize in designing and installing solar + battery systems that protect families during outages. If you’d like to learn how to make your home more resilient against earthquakes and other emergencies, contact us today for a free consultation.
9/18/25
How Does the NEM 3.0 Application Work?
When you apply for solar or add a battery in PG&E’s territory, your contractor (like Ally Electric and Solar Inc.) files an Interconnection Application. This is how it works:
Submit Interconnection Application
System details (panels, inverters, batteries) are entered into PG&E’s portal.
Required documents: site plan, single-line diagram, spec sheets.
PG&E Review
PG&E checks that your system complies with Rule 21 interconnection standards.
They confirm system size, safety ratings, and that your main panel can handle the system.
Permission to Operate (PTO)
Once approved and inspected, PG&E issues PTO.
This is the official green light for you to run your solar + storage system and start receiving NEM 3.0 credits.
What Does This Mean for Homeowners?
Under NEM 3.0:
Payback is longer without storage → Solar alone saves less because export credits are lower.
Solar + Battery is the new standard → A battery allows you to store daytime power and use it at night, making your system pay off faster.
Energy Security → Batteries provide backup power during PG&E outages.
How Ally Electric and Solar Inc. Can Help
At Ally Electric and Solar Inc. (Richmond, CA – CSLB #806465), we’ve guided hundreds of Bay Area families through the PG&E application process. We handle:
Preparing and submitting your NEM 3.0 interconnection application.
Designing systems that maximize self-consumption under new rules.
Installing trusted batteries like Tesla Powerwall, Enphase IQ, FranklinWH.
Panel upgrades and permitting for seamless integration.
Take Action Now
The sooner you apply, the sooner you can lock in savings and protect your home from rising PG&E rates.
Contact us today to get started with your NEM 3.0 solar + storage consultation.
510-559-7700
info@allyelectricandsolar.com
www.allyelectricandsolar.com
CSLB License #806465
FQAs
1. If I sell excess energy to PG&E, will PG&E charge me for it?
No — PG&E does not charge you for exporting your excess solar energy. Instead, under NEM 3.0, they give you export credits on your bill. The difference is that these credits are now much lower (around 5–8¢ per kWh) compared to the near-retail credits homeowners received under NEM 2.0. That’s why using your own solar energy or storing it in a battery provides greater savings than sending it back to the grid.
2. Will I still get the 30% Federal Solar Tax Credit under NEM 3.0?
Yes. The 30% Federal Investment Tax Credit (ITC) is completely separate from NEM policies. It applies to both solar and battery systems installed through the end of 2025.
3. Is it still worth going solar under NEM 3.0?
Yes — but the strategy has changed. Solar alone saves less than it used to because export credits are lower. Pairing solar with a battery system allows you to store your extra energy and use it during expensive peak hours, which dramatically improves your savings.
4. Can I keep my old NEM 2.0 plan if I already have solar?
Yes. If your system was approved under NEM 2.0, you are grandfathered into that program for 20 years from your Permission to Operate (PTO) date. However, adding new solar capacity may trigger a new NEM 3.0 review. Adding only a battery (without increasing solar size) usually does not change your NEM 2.0 status.
5. How long does the NEM 3.0 application take?
After submitting your application and documents, PG&E typically takes 2–4 weeks to review. Once the city inspection is complete and passes, PG&E issues your Permission to Operate (PTO).
6. Can I charge my battery from the grid under NEM 3.0?
Yes, depending on the configuration. Systems like Tesla Powerwall and Enphase IQ Battery can be set to allow or prevent grid charging. Most homeowners in PG&E territory choose “solar-only charging” to comply with NEM requirements and maximize savings.
7. What happens if I use more electricity than my solar produces?
You’ll still receive energy from PG&E, and you’ll be billed at normal rates for that extra usage. Your solar + battery system helps reduce this by covering as much of your home’s load as possible.
Adding a Battery to a NEM2.0 Solar System: What You Need to Know
Many homeowners in California want to add battery storage to their existing solar systems. If your system is already connected under NEM2.0, you might ask: What happens if I add a battery? Can I use it right away? Will I lose my NEM2.0 benefits?
The answers depend on PG&E’s Rule 21 interconnection process and the concept of Permission to Operate (PTO).
Why PTO Matters
Even if your solar system has PTO, adding a battery counts as a material modification. This means PG&E requires a new interconnection application under Rule 21.
Until PG&E grants PTO for the battery, the system must stay in No PTO mode:
The battery cannot discharge to your home or the grid.
Backup operation during outages is disabled.
The battery keeps a small reserve charge and may accept a trickle charge, but it won’t work normally.
This protects your NEM2.0 status and ensures safety with anti-islanding rules.
What Happens After PTO
Once PG&E grants PTO for the battery:
Home Support: The battery can discharge to power your home.
Grid Export: If properly documented and export-limited, the battery can export under NEM2.0 rules.
Backup Power: The battery can island your home during outages and recharge from solar.
Grandfathering Preserved: With correct export limits documented, your system stays under NEM2.0, avoiding forced move to NEM3.0.
Before vs. After PTO
|# Adding a Battery to Your NEM2.0 Solar System: What You Should Know
If you have solar panels connected under California's NEM2.0 program and want to add a battery, here’s a simple guide to help you understand what to expect.
Why Permission to Operate (PTO) Matters
Adding a battery is a big change, so PG&E requires a new approval called Permission to Operate (PTO) before you can use it fully.
Until PG&E gives PTO for your battery:
The battery can’t send power to your home or the grid.
Backup power during outages won’t work.
The battery will keep a small charge but won’t operate normally.
This keeps your system safe and protects your NEM2.0 benefits.
What Happens After PTO?
Once PG&E approves your battery:
Your battery can power your home.
It can send limited power back to the grid under NEM2.0 rules.
Backup power during outages will work.
Your system keeps its NEM2.0 status, avoiding changes to newer, less favorable rules.
If you want, I can help you create more simple guides or customer-friendly materials like this!| Before PTO (No PTO Mode) | After PTO (Approved under Rule 21) |
Adding a battery to a NEM2.0 system is a smart choice for resilience and savings, but it requires strict compliance. Do not energize the battery until PG&E issues PTO. After approval, your battery can fully operate and keep your NEM2.0 benefits.
If you’re considering a battery addition, work closely with your installer to ensure the interconnection application is filed correctly and export limits are documented. That way, you’ll enjoy the full benefits of storage without risking your NEM2.0 status.
NEM 2.0 vs NEM 3.0 for PG&E Solar Customers: Complete 2026 Guide
NEM 3.0 (implemented April 2023) reduced solar export credits by 75-80% compared to NEM 2.0. PG&E customers now earn 5-8 cents per kilowatt-hour instead of 30 cents. This extends payback periods from 6 years to 10+ years. Battery storage is now essential for NEM 3.0 systems to maximize savings.
What California PG&E Solar Customers Need to Know:
The shift from NEM 2.0 to NEM 3.0 is the biggest change in California solar policy in 20 years. If you interconnected before April 15, 2023, you're grandfathered into NEM 2.0 for 20 years. New solar customers face dramatically lower export rates and need battery storage to achieve reasonable payback periods.
What is Net Energy Metering (NEM)?
Net Energy Metering is the billing system that determines how much credit you receive when your solar panels produce more electricity than your home uses. This excess energy flows back to the PG&E grid, and you receive compensation for it.
For PG&E customers in California, this policy directly impacts your solar savings, system design, and return on investment.
NEM 2.0 Explained
How NEM 2.0 Works
NEM 2.0 provides nearly one-to-one credit for excess solar electricity. If you pay 30 cents per kilowatt-hour to buy power from PG&E, you receive approximately 30 cents in credit when exporting that same amount back to the grid.
This generous compensation structure made solar installations in California economically attractive, with typical payback periods of just 6 years.
Who Qualifies for NEM 2.0
You qualify for NEM 2.0 if your solar system's interconnection application was submitted to PG&E before April 15, 2023, and you received Permission to Operate by April 15, 2026.
NEM 2.0 status is protected for 20 years from the date your system is activated. This protection transfers to new homeowners if you sell your property.
NEM 2.0 Battery Addition Rule: Existing NEM 2.0 customers can add battery storage to their systems at any time without losing their grandfathered status. This allows you to upgrade your system with modern battery technology while maintaining favorable export rates.
NEM 2.0 Benefits
High Export Credits: Approximately 30 cents per kilowatt-hour matches retail electricity rates
Fast Payback: Average 6-year return on investment
Predictable Rates: Stable, consistent compensation structure
Long Grandfathering: 20-year protection period
Transferable Status: Benefits pass to new homeowners
NEM 3.0 Explained
The Major Policy Shift
NEM 3.0 fundamentally changed California solar economics. Instead of net metering (one-to-one credits), it implements net billing based on the Avoided Cost Calculator.
This means PG&E compensates you based on what they save by using your solar electricity rather than purchasing or generating power from other sources.
NEM 3.0 Export Rates
Export credits under NEM 3.0 average 5-8 cents per kilowatt-hour, representing a 75-80% reduction from NEM 2.0 rates.
These rates are not fixed. They vary across 576 possible combinations based on:
Time of day (hour-by-hour variations)
Day of week (weekday vs weekend differences)
Season (summer vs winter rates)
Grid demand conditions
Peak export rates can reach $3.50 per kilowatt-hour during high-demand summer evenings, while off-peak rates may drop to near zero during sunny midday periods when solar production is abundant across California.
Who Falls Under NEM 3.0
You are on NEM 3.0 if your interconnection application was submitted to PG&E on or after April 15, 2023.
NEM 3.0 rates are grandfathered for only 9 years from your interconnection date. This protection does not transfer if you sell your home.
Important NEM 3.0 Limitation: Unlike NEM 2.0's 20-year protection that transfers to buyers, NEM 3.0's 9-year grandfathering is lost when you sell your property. New owners will be subject to whatever rates are in effect at the time of sale.
NEM 3.0 Challenges
Reduced Export Value: 75-80% lower compensation than NEM 2.0
Extended Payback: 10+ years without battery storage
Complex Rate Structure: 576 time-varying rate combinations
Shorter Grandfathering: Only 9 years of rate protection
Non-transferable: Benefits lost when selling property
Battery Dependency: Storage essential for economic viability
NEM 2.0 vs NEM 3.0: Direct Comparison
| Feature | NEM 2.0 | NEM 3.0 |
|---|---|---|
| Export Credit Rate | ~30 cents/kWh (retail rate) | 5-8 cents/kWh average |
| Billing Method | Net metering (1:1 credit) | Net billing (avoided cost) |
| Rate Variability | Fixed retail rates | 576 time-varying rates |
| Typical Payback Period | 6 years | 10+ years |
| Grandfathering Length | 20 years | 9 years |
| Transferability | Yes (to new owners) | No (lost at sale) |
| Battery Storage | Optional upgrade | Essential for ROI |
| Eligibility Cutoff | Before April 15, 2023 | On/after April 15, 2023 |
| System Expansion Rules | Stay on NEM 2.0 if under 10%/1kW increase | Cannot switch to NEM 2.0 |
Battery Storage Under NEM 3.0
Why Batteries Became Essential
Under NEM 2.0, batteries were optional upgrades that provided backup power and some additional savings. Under NEM 3.0, batteries are essential for achieving reasonable returns on your solar investment.
The economics are straightforward. Instead of exporting midday solar production for 5-8 cents per kilowatt-hour, you store it in batteries and use it during evening peak hours when you would otherwise pay 40-50 cents per kilowatt-hour to buy from PG&E.
How Batteries Maximize NEM 3.0 Savings
Strategic battery use under NEM 3.0 focuses on three key strategies:
Peak Demand Shifting: Store cheap midday solar, use it during expensive evening hours (6-9 PM)
Export Rate Optimization: Discharge batteries during highest export rate periods (can reach $3.50/kWh)
Time-of-Use Arbitrage: Avoid purchasing electricity during peak rate periods
Battery Sizing Tip: For NEM 3.0 systems, properly sized batteries should store enough energy to cover your evening consumption (typically 6 PM to 10 PM). This usually requires 10-15 kWh of storage capacity for average California homes.
Battery Costs vs Savings
As of 2026, residential battery systems cost approximately $10,000-$15,000 for 10-13 kWh of capacity after the 30% federal tax credit.
When integrated with NEM 3.0 solar systems, batteries can reduce your overall payback period by 3-5 years compared to solar-only installations, making them economically justified despite the upfront cost.
Financial Impact for PG&E Customers
NEM 2.0 Economics
A typical 8 kW NEM 2.0 solar system in California costs approximately $20,000-$24,000 after federal tax credits. With retail rate credits, this system pays for itself in 6 years and generates over $40,000 in savings over 25 years.
NEM 3.0 Economics
The same 8 kW system under NEM 3.0 without batteries has a payback period of 12-15 years. Adding 10 kWh of battery storage increases upfront costs to $30,000-$35,000 but reduces payback to 8-10 years.
Seasonal Banking Challenges
NEM 2.0 customers could bank summer solar credits to offset winter electricity bills. The reduced export rates under NEM 3.0 make this strategy largely ineffective.
You may generate enough credits to cover summer air conditioning costs, but you will likely need to purchase expensive winter electricity from PG&E, especially in heating-dominated regions of Northern California.
Critical Deadlines and Rules
Important Dates for PG&E Solar Customers
April 15, 2023: NEM 3.0 implementation date
April 15, 2026: Final deadline to receive Permission to Operate for systems with NEM 2.0 applications
December 31, 2024: Systems interconnected by this date locked in first generation of Avoided Cost Calculator rates for 9 years
January 1, 2025 - December 31, 2027: Systems interconnecting during this period lock in second generation rates for 9 years
System Expansion Rules
NEM 2.0 customers who increase system size by more than 10% or 1 kilowatt (whichever is greater) will be moved to NEM 3.0.
Alternative: Request a non-exporting system that meets specific utility requirements. This allows capacity expansion while maintaining NEM 2.0 status for your existing system.
Expansion Warning: Before expanding your NEM 2.0 system, consult with your installer about non-exporting options. Accidentally triggering the transition to NEM 3.0 cannot be reversed and will significantly impact your long-term savings.
Frequently Asked Questions
What is the difference between NEM 2.0 and NEM 3.0?
NEM 2.0 provides approximately 30 cents per kilowatt-hour in export credits (one-to-one with retail rates), while NEM 3.0 provides only 5-8 cents per kilowatt-hour on average based on time-varying avoided costs. This represents a 75-80% reduction in solar export compensation for PG&E customers.
How do I know if I have NEM 2.0 or NEM 3.0?
Check your interconnection application date. If you submitted your application to PG&E before April 15, 2023, and received Permission to Operate by April 15, 2026, you have NEM 2.0. Applications submitted on or after April 15, 2023, fall under NEM 3.0.
Can NEM 2.0 customers add batteries without losing their status?
Yes. NEM 2.0 customers can add battery storage at any time without being moved to NEM 3.0. This is a significant benefit that allows you to enhance your system with modern battery technology while maintaining your favorable grandfathered rates.
Is solar still worth it under NEM 3.0 in California?
Yes, but battery storage is essential. While NEM 3.0 solar-only systems have 10+ year payback periods, adding batteries reduces this to 8-10 years. Rising PG&E electricity rates, the 30% federal tax credit, and energy independence benefits make NEM 3.0 solar with batteries a viable investment.
How long is NEM 2.0 grandfathered?
NEM 2.0 is protected for 20 years from your system activation date. This grandfathering transfers to new homeowners if you sell your property, making it a valuable selling point.
How long is NEM 3.0 grandfathered?
NEM 3.0 rates are locked for 9 years from interconnection. However, this grandfathering does not transfer to new owners if you sell your home. Buyers will be subject to whatever rates are in effect at the time of purchase.
What happens if I expand my NEM 2.0 system?
If you increase your system size by more than 10% or 1 kilowatt (whichever is greater), you will be moved to NEM 3.0. Consider non-exporting system configurations to add capacity without triggering this transition.
Can I switch from NEM 3.0 back to NEM 2.0?
No. Once you are on NEM 3.0, you cannot switch back to NEM 2.0. The grandfathering window closed on April 15, 2023, and no exceptions are available.
Do NEM 3.0 rates apply to all California utilities?
NEM 3.0 applies to California's three major investor-owned utilities: Pacific Gas and Electric (PG&E), Southern California Edison (SCE), and San Diego Gas and Electric (SDG&E). Municipal utilities like LADWP and SMUD have separate policies.
How much do batteries cost for NEM 3.0 systems?
Residential battery systems typically cost $10,000-$15,000 for 10-13 kWh of storage capacity after the 30% federal tax credit. While this increases upfront costs, batteries reduce overall payback periods by 3-5 years under NEM 3.0.
Action Steps for PG&E Customers
For Current NEM 2.0 Customers
Protect your NEM 2.0 status by avoiding system expansions above the 10%/1kW threshold
Consider adding battery storage to maximize your grandfathered rates without risking your status
Document your NEM 2.0 status for future home sales, as this is a valuable property feature
Review your energy usage patterns to optimize existing system performance
For New Solar Buyers Under NEM 3.0
Include battery storage in your initial system design rather than adding it later
Work with installers experienced in NEM 3.0 optimization strategies
Size your system to accommodate future electrification needs (heat pumps, EV charging)
Request detailed financial modeling based on NEM 3.0 economics, not outdated NEM 2.0 projections
Understand your time-of-use rate plan and how export rates vary throughout the day
Interconnect as soon as possible to lock in current Avoided Cost Calculator rates
For Prospective Solar Buyers
Get multiple quotes from reputable installers familiar with NEM 3.0
Verify that financial projections account for reduced export rates and time-varying compensation
Request battery storage proposals alongside solar-only designs for comparison
Factor in rising PG&E electricity rates when evaluating long-term savings
Consider your home's location and climate when assessing seasonal solar production
Conclusion
The transition from NEM 2.0 to NEM 3.0 represents the most significant policy shift in California solar history. PG&E customers with NEM 2.0 systems enjoy generous export credits and fast payback periods that are no longer available to new solar installations.
While NEM 3.0 dramatically reduced solar export compensation, the combination of rising electricity rates, federal tax incentives, and battery storage technology keeps solar economically viable for most California homeowners.
The key is understanding which program you fall under and optimizing your system accordingly. NEM 2.0 customers should protect their grandfathered status while considering strategic upgrades. NEM 3.0 customers must approach solar as a more complex investment requiring battery integration and realistic payback expectations.
Whether you're considering solar for the first time or looking to optimize your existing system, the most important step is working with knowledgeable professionals who understand the nuances of NEM 2.0 versus NEM 3.0 and can design systems that maximize your specific situation under current PG&E policies.
Disclaimer: This information is for educational purposes only. Solar regulations, rates, and incentives are subject to change. For personalized guidance on your specific situation, consult with licensed solar professionals and review current PG&E tariffs. Information accurate as of February 2026.
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Berkeley BESO 2026: What Is Changing and What Do Homeowners Need to Do?
Berkeley’s Building Emissions Saving Ordinance (BESO) is changing starting January 1, 2026, and it directly affects home sellers, buyers, and real estate agents.
Below are the most common questions people are asking—answered clearly and accurately.
What Is Berkeley’s BESO Program?
Berkeley’s Building Emissions Saving Ordinance (BESO) is a city program designed to reduce greenhouse gas emissions from residential buildings by requiring energy efficiency and electrification upgrades at the time of sale.
The 2026 update significantly changes who is responsible, when compliance is required, and how upgrades are completed.
What Is the Home Energy Score (HES)?
The Home Energy Score (HES) is a U.S. Department of Energy rating that measures how energy-efficient a home is.
Scores range from 1 to 10
1 = highest energy use
10 = most energy efficient
What’s new in 2026?
The seller must obtain the Home Energy Score
The score must be displayed on the MLS listing
Sellers can no longer defer this responsibility to buyers
If the Home Energy Score is missing, the buyer may be charged a $500 noncompliance fee.
When Do the New BESO Rules Take Effect?
The updated requirements take effect on:
January 1, 2026
This applies to most single-family homes sold in Berkeley after that date.
How Many BESO Credits Are Required?
Homes must complete upgrades totaling 6 credits.
Credits can be earned through a combination of electrification, efficiency, and energy upgrades.
What Upgrades Qualify for BESO Credits?
Which upgrades earn the most credits?
6-Credit Upgrades (one upgrade meets full requirement):
Heat Pump Water Heater
Heat Pump HVAC
Knob-and-Tube Wiring Replacement
Smart Electrical Service Panel
Electrical Service Panel Upgrade
Do solar and batteries count for BESO?
Yes.
Solar PV system → 3 credits
Battery Energy Storage System → 3 credits
Together, solar + battery can satisfy the full 6-credit requirement.
Other qualifying upgrades include:
EV Charger (2 credits)
Electric or Induction Range (2 credits)
Window Replacement (2–4 credits)
Wall or Attic Insulation (2–4 credits)
HVAC Duct Improvements (2 credits)
Air Sealing, Crawlspace Insulation, Whole-House Fan (1–2 credits)
Who Completes the Upgrades: Seller or Buyer?
BESO allows two compliance paths.
What Happens If the Buyer Completes the Upgrades?
Seller obtains the Home Energy Score
Seller lists the home with the score on MLS
Buyer places a $2,500 deposit into escrow
Buyer completes upgrades within 2–3 years
Buyer submits compliance documentation
Buyer may receive up to $5,000 refunded after compliance
This option can make sense if the buyer wants to customize upgrades.
What Happens If the Seller Completes the Upgrades?
Seller completes qualifying upgrades before sale
Seller obtains Home Energy Score
Seller submits compliance certificate
No escrow deposit required
Property is fully compliant at closing
This option often makes the home more attractive to buyers.
Are Any Properties Exempt from BESO?
Yes. Common exemptions include:
ADUs and condos
Certain multi-unit buildings (covered starting in 2028)
All-electric homes with capped gas lines
Refinances and inheritance transfers
Some first-time homebuyer assistance programs
Always confirm exemptions with a professional.
Why Are Electrical Panels and Batteries Popular BESO Solutions?
Electrical upgrades and battery storage are increasingly popular because they:
Earn high BESO credit value
Improve resale value
Support full electrification
Provide backup power during outages
Future-proof the home for EVs and heat pumps
A panel upgrade + battery system is often more practical than insulation-only solutions.
What Happens If You Ignore BESO Requirements?
Failing to plan for BESO can result in:
$2,500 escrow deposits
Delays in closing
Reduced buyer interest
More expensive, rushed upgrades later
Early planning gives homeowners more flexibility and lower costs.
How Can Homeowners Prepare for BESO 2026?
The best steps are:
Get a Home Energy Score early
Identify the easiest path to 6 credits
Choose upgrades that also improve comfort and reliability
Work with licensed professionals familiar with Berkeley permitting
Who Can Help With BESO Compliance in Berkeley?
Ally Electric & Solar Inc. helps homeowners and sellers:
Understand BESO requirements
Design compliant electrification plans
Install permitted panel upgrades, solar, and battery systems
Prepare homes for resale with confidence
📍 Berkeley & Bay Area
📞 Contact us early at 510-559-7700 —BESO planning is easiest before you list.
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