NEM 3.0 (Net Billing)
California's successor to traditional net metering, which compensates solar exports at a lower "avoided cost" rate rather than the full retail rate. Took effect April 2023.
Why It Matters
NEM 3.0 reduced export credit values by ~75%, making battery storage essential for new California solar installations to maximize self-consumption and shift exports to peak hours.
Real-World Example
Related Tools
Related Topics
Related Terms
Net Metering
A billing mechanism that credits solar energy system owners for the electricity they add to the grid. The excess power generated during the day offsets power consumed at night.
Avoided Cost
The cost a utility would have incurred to generate or purchase electricity that was instead provided by a distributed resource like rooftop solar.
Battery Storage
A system that stores excess solar energy for use when the sun isn't shining, providing backup power during outages.