Do We Need a Battery Under NEM 3.0 in California?
No rule says you need a battery to go solar in California. But NEM 3.0 changed how solar pays. Regulators call it the Net Billing Tariff. PG&E, SCE, and SDG&E market it as the Solar Billing Plan. Under it, the credit for solar you send to the grid is usually lower than the price you pay for grid power. That gap hurts most after dark, when your panels stop. So, do we need a battery under NEM 3.0 in California? Below, you'll find the CPUC's own answer, a real rate example, and what changed in 2025 and 2026.
Do You Need a Battery Under NEM 3.0? The Short Answer
You don't have to add a battery to go solar under the Net Billing Tariff. Panels alone work fine. Still, the CPUC built the plan to reward storage. On the CPUC's net billing page, the commission says adding battery storage is how customers can get the most bill savings. A compatible battery can shift stored solar to valuable hours for household use. Exporting stored energy requires equipment that supports it and utility authorization; it is not a capability of every battery.
So there's no NEM 3.0 battery requirement, only a strong nudge. The rules cover PG&E, SCE, and SDG&E customers. They apply if you asked to connect on or after April 15, 2023, under CPUC Decision 22-12-056. If you applied before that, you kept the old NEM terms. A city or other public utility has its own rules, so check its solar rate. CPUC NEM and Net Billing.
Your situation | Battery required? | What to weigh |
New solar on net billing. You applied on or after April 15, 2023. | No. | Export credits are usually below the retail rate. Solar you use or store is often worth more. |
Someone is home and using power at midday. | No. | You use more solar as it's made. A battery has less to shift. |
Home is empty by day, with heavy use from 4 to 9 p.m. | No. | This is the best case for storage. Your solar and your use don't overlap. |
Already on NEM 1.0 or NEM 2.0. | No. | Different rules apply. Ask your utility how a battery affects your deal before you sign. |
Plenty of solar owners have already made this call. By the end of 2024, the CPUC says, nearly 70 percent of net billing customers had paired a battery with their solar. New to these terms? Start with net metering and NEM 3.0 basics. Then look at how the plan values power you send out at noon versus power you buy at 7 p.m. CPUC adoption data.
Why Net Billing Favors Stored Solar
Under the old net metering rules, power you sent to the grid earned close to the retail price. Under net billing, it earns what that power is worth to the grid in that hour. Most solar comes in at midday, when that value is low. Most homes use the most power in the evening, when prices are high.
How Export Credits Are Set
So how are NEM 3.0 export rates set? CPUC Decision 22-12-056 dropped retail-rate credits for exports. In their place, it pays a value from a CPUC tool called the Avoided Cost Calculator. That value moves up and down with what the grid needs. The CPUC notes that these Energy Export Credits tend to sit below the retail price. On late summer evenings, though, they can climb above it. CPUC export-credit rules.
The cited revision of PG&E's Schedule NBT is effective August 28, 2026; this is not the tariff's original start date. Export credits vary by hour, month, and day type, so one "average" credit number can mislead you. PG&E Schedule NBT.
The Evening Is Where the Value Is
For many families, the busy stretch runs from dinner to bedtime. The AC and oven run while the panels sit idle. That's also when each utility's rate plan charges the most. If you're on PG&E's E-ELEC plan, your priciest hours fall between 4 and 9 each evening, seven days a week. If SCE is your utility, look up the exact window on your TOU-D-PRIME bill before you plan around it. PG&E E-ELEC. CPUC required rate plans.
Utility | Net billing schedule | Required home rate plan |
PG&E. | Schedule NBT. | E-ELEC (Electric Home). |
SCE. | Schedule NBT. | TOU-D-PRIME. |
SDG&E. | Schedule NBT. | EV-TOU-5. |
What the Lock-In Means
Worried your credit will drop after you sign up? PG&E customers with a complete interconnection application between April 15, 2023, and December 31, 2027, receive a nine-year export-rate schedule based on their application year. SCE uses the original permission-to-operate (PTO) date in that window and the ACC vintage for that PTO year. At both utilities, the nine-year period starts at the original PTO date. Eligibility and transfer exceptions follow each utility's tariff; buying a home with an existing system does not automatically preserve the original customer's locked-in rates. PG&E NBT lock-in provisions. SCE NBT lock-in provisions.
New PG&E and SCE homeowners can also pick up a modest top-up on their export pay, called the ACC Plus adder. Each utility sizes it by the same date it uses for the lock-in. At PG&E, the year of your complete application decides it: 0.88 cents per exported kWh for a 2026 application, and 0.44 cents for 2027. At SCE, the year of your first PTO decides it. A standard (non-equity) home with a 2026 PTO date gets 1.6 cents per kWh, and a 2027 PTO date gets 0.8 cents. SCE pays nothing for PTO dates in 2028 or later. The adder lasts for the nine-year lock-in, then ends. Not every home qualifies. SCE homes must be on its TOU-D-PRIME rate, and at both utilities, new construction and buyers who take over an existing system are left out. PG&E ACC Plus rates and eligibility. SCE ACC Plus rates and eligibility.
Even a big pile of export credits leaves part of your bill untouched. Every kWh you buy from PG&E carries a set of non-bypassable charges. Your regular export credits can't chip away at those fees, and the ACC Plus top-up is the lone exception. These plans are time-of-use, so learn the peak hours on your plan. That's when stored solar replaces your priciest grid power. PG&E NBT charges and credits.
Batteries That Fit Net Billing: EcoFlow DELTA Pro Ultra and DELTA Pro Ultra X
Moving midday solar into the evening requires a battery and a compatible solar connection. A correctly designed net billing tariff battery system can store solar for later household use, including PG&E E-ELEC's 4:00 p.m. to 9:00 p.m. peak period. Before installation, a licensed electrician must assess the existing photovoltaic (PV) equipment, wiring, and any required utility interconnection approval. Connecting a battery to a Smart Home Panel alone does not establish that it can capture surplus from an existing rooftop system. PG&E E-ELEC peak hours.
PG&E's tariff describes storage configurations such as No Grid Charging and No Storage Export. These are utility billing and interconnection conditions, not a promise that a particular battery can export energy. For EcoFlow DELTA Pro Ultra with Smart Home Panel 2, a licensed electrician must verify the existing PV inverter, system topology, solar-input limits, and utility requirements. EcoFlow's advertised direct rooftop-PV charging arrangement is intended for users who have not installed a solar inverter; it does not establish compatibility with every existing grid-tied rooftop system. Do not assume this pairing automatically stores existing rooftop surplus or sells stored energy to the grid. EcoFlow DELTA Pro Ultra solar conditions. PG&E paired-storage conditions.
Larger or all-electric homes may run an AC, an electric range, and an EV charger during the same evening hours. EcoFlow DELTA Pro Ultra X starts at 12kWh and 12kW, with household circuit integration available through Smart Home Panel 3 or Smart Gateway. Rooftop-solar charging through either device requires current transformers (CTs) and a compatible installation assessed by a licensed electrician. EcoFlow's DELTA Pro Ultra X support page states that the system draws power from the grid but does not actively send power back to it. Its value here is storage for household use and backup, rather than battery-to-grid export revenue. EcoFlow DELTA Pro Ultra X rooftop-solar requirements. EcoFlow DELTA Pro Ultra X grid-connection FAQ.
With either system, what you can cover depends on your home's loads. Heavy loads may need extra batteries. Sizing a home solar battery around your evening use keeps you from paying for space you won't use.
A Worked Example on PG&E's E-ELEC Plan
This is an example, not a forecast. It uses the PG&E E-ELEC rate sheet effective June 1, 2026, checked on October 12, 2026. It also assumes one home's habits. If you're with SCE or SDG&E, run the same math with your own prices. Official PG&E E-ELEC rate sheet.
Period | Hours (every day) | Summer (June 1 to Sept 30) | Winter (Oct 1 to May 31) |
Peak. | 4:00 p.m. to 9:00 p.m. | $0.55214/kWh. | $0.32063/kWh. |
Part-peak. | 3:00 p.m. to 4:00 p.m. and 9:00 p.m. to 12:00 a.m. | $0.39026/kWh. | $0.29854/kWh. |
Off-peak. | All other hours. | $0.33358/kWh. | $0.28468/kWh. |
E-ELEC also has a Base Services Charge. It's $0.19713, $0.39688, or $0.79343 per day, based on income. A battery doesn't lower it. For this example, say your battery covers 8 kWh of the 4 to 9 p.m. peak each day. Your own evening use may be higher or lower. PG&E Base Services Charge.
Example step | Math | Result |
Summer peak power you don't buy. | 8 kWh × 122 days × $0.55214. | About $539. |
Winter peak power you don't buy. | 8 kWh × 243 days × $0.32063. | About $623. |
Total per year. | $539 + $623. | About $1,162. |
Solar needed at 85% battery efficiency. | 8 kWh ÷ 0.85 × 365 days. | About 3,435 kWh. |
Net example value. | $1,162 minus (3,435 kWh × your midday export credit). | Depends on your credit. |
That $1,162 isn't savings yet. You give up the export credits that stored solar would have earned. The 85% efficiency is our own guess, not an EcoFlow or PG&E figure. We left the export credit open on purpose. It changes by hour, month, and day type. Find yours on the Energy Export Credit schedule for the year you applied. PG&E hourly export-credit schedule.
Several things can pull the real result lower:
Energy lost going into and out of the battery.
Cloudy or short winter days when the battery doesn't fill.
Evenings when you use less than the battery holds.
The lower winter peak price ($0.32063 versus $0.55214).
Non-bypassable charges and the fixed daily charge.
The cost of the battery and install.
E-ELEC keeps a peak window all year. But in winter, peak costs only about 3.6 cents per kWh more than off-peak. In summer, the gap is about 21.9 cents. We don't give a payback figure, since system cost varies by quote. Ask your installer to show the math in writing. They should name the tariff sheet and export schedule they used.
What Changed in 2025 and 2026
The example uses the PG&E E-ELEC rate sheet effective June 1, 2026. The policy sources below were checked on October 12, 2026. Most articles on NEM 3.0 California rules came out in 2023, and some still describe incentives that have ended. Six developments affect your battery choice.
Item | What happened | Status |
Court case. | In 2025, the California Supreme Court changed how the case should be reviewed. It sent the case back. On March 9, 2026, the Court of Appeal upheld the CPUC's decision. March 9, 2026 Court of Appeal opinion. | Upheld. |
AB 942. | The 2025 proposal would have moved NEM customers to a new tariff when a property was sold. The Assembly Utilities and Energy Committee's November 2025 summary records its status as "Senate-In Committee Process - Rules," rather than an enacted change. That historical proposal should not be treated as a current tariff requirement. Assembly 2025 Legislative Summary, page 30. | Not passed. |
Avoided Cost Calculator. | Resolution E-5328 adopted the 2024 version on Nov. 13, 2024. The CPUC approved 2026 updates on Sept. 3, 2026, in Decision 26-09-007. Customers inside their nine-year lock-in keep their schedule. CPUC ACC decisions and updates. | Final. |
Shared and virtual setups. | Decision 23-11-068 established virtual net billing and net billing aggregation tariffs. Decision 26-05-033 denied the utilities' request to rehear Resolution E-5374, which addresses virtual-NEM arrangements. These proceedings concern shared or multi-meter configurations and do not replace the standard single-home NBT rules. CPUC NBT proceedings. CPUC virtual-NEM proceedings. | Final. |
Federal tax credit (Section 25D). | It doesn't cover systems placed in service after December 31, 2025. IRS Residential Clean Energy Credit. | Ended. |
SGIP battery rebates. | Most home storage and equity budgets show Closed for PG&E, SCE, SoCalGas, and CSE. The AB 209 equity budget shows Waitlist for CSE, SoCalGas, and LADWP. SelfGenCA live budget status. | Changes often. |
The Court of Appeal upheld the tariff in March 2026. So plan around it as the rule in place. A battery installed in 2026 won't earn the 30% federal credit. Per the IRS Residential Clean Energy Credit page, systems placed in service after December 31, 2025, don't qualify. A quote that still counts this credit is out of date. Official Court of Appeal opinion.
State help is thin, too. The CPUC's SGIP program page says SGIP now aims its solar and storage rebates at low-income homes. Most budgets are closed or have a waitlist. Check the SelfGenCA program site for live status. With the federal credit gone, 2026 residential clean energy credits look very different from a year ago. SelfGenCA live budget status.
When Solar Without a Battery Still Makes Sense
A battery adds a big cost. It isn't the right first step for everyone. Solar alone still cuts the power you buy during the day. If you've searched "is solar worth it without a battery California," the answer depends on how much power you use while the sun is up.
Solar on its own can make sense when these fit you:
You're home during the day. Or you can shift big loads into sunny hours, like EV charging, water heating, laundry, or a pool pump.
Your system is sized close to your daytime use, so you send little to the grid.
You can afford panels now and storage later. Ask your installer to plan for a future battery.
You rent or can't change the electrical panel. Then the choice belongs to the owner.
A NEM 3.0 battery is more likely to pay off in some homes. Maybe your house sits empty until late afternoon. Maybe most of your use falls between 4 and 9 p.m., or your home is all-electric. If you're comparing solar battery California quotes, make sure the battery is sized to cover that 4 to 9 p.m. window.
Ask every installer three questions. Which rate and export credit schedules did you use? How many kWh per day did you assume I'd shift, and when? Does the quote include a tax credit or rebate, and is it still open?
Conclusion
You don't need a battery under NEM 3.0 in California. But the Net Billing Tariff pays less than retail for solar you export. That makes stored solar used in the evening worth more. Pull your utility's rate sheet and estimate the kWh you'd shift into peak hours. Get the export credit schedule in writing, too. If you're comparing storage, look at the EcoFlow DELTA Pro Ultra and EcoFlow DELTA Pro Ultra X. A licensed electrician should install either one.
FAQs
Is a battery required under NEM 3.0?
No. The Net Billing Tariff works with solar alone. The CPUC says adding battery storage helps customers get the most bill savings.
Is solar worth it without a battery in California?
It can be for homes that use most of their power during the day. Homes with mostly evening use send out more solar at low credits. They also buy more power at peak prices.
Can NEM 2.0 customers add a battery?
NEM 2.0 rules differ from net billing. Before you sign anything, ask your utility how a battery affects your current deal. Get the answer in writing.
How big should a battery be under NEM 3.0?
Size it to the energy you use during your plan's peak hours, not your whole day. On PG&E's E-ELEC plan, that's 4 to 9 p.m.
Is there still a tax credit or rebate for a home battery in California in 2026?
The IRS says the federal 25D credit ended for systems placed in service after December 31, 2025. Most SGIP home budgets show Closed or Waitlist. Check selfgenca.com for the latest status. IRS credit eligibility. SelfGenCA live budget status.
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