Published June 7, 2026 · Updated June 7, 2026 · 6 min read
The short answer
California's three big utilities — SCE, SDG&E, and PG&E — all put solar customers on NEM 3.0 (the Net Billing Tariff), which pays little for exported power. They differ in rate structures and peak windows, but the strategy is the same: store daytime solar in a battery and use it during the evening peak. Municipal utilities like LADWP set their own rules.
By Vinnie Curcie, Founder & CEO
The common ground: NEM 3.0 across all three
Southern California Edison (SCE), San Diego Gas & Electric (SDG&E), and Pacific Gas & Electric (PG&E) are California's three large investor-owned utilities (IOUs), and all three put new solar customers on NEM 3.0 — the Net Billing Tariff — if they applied for interconnection after April 15, 2023. Under NEM 3.0, the credit you earn for exporting solar is far lower than what you pay to buy power back, roughly 75–80% below the old NEM 2.0 rates. That single fact shapes solar design in all three territories.
Where they differ: rate structures and TOU peaks
The utilities differ in the details of their rate plans, time-of-use peak windows, and the export-credit values that net billing assigns to each hour. All three set an expensive evening peak — commonly in the 4–9 PM range — but the exact hours, the size of the peak-versus-off-peak price spread, and the seasonal differences vary by utility and by the specific rate plan you're on. Those differences change how a battery should be scheduled, but not whether you need one.
Why the strategy is the same everywhere
Despite the per-utility nuances, the winning play under NEM 3.0 is identical across SCE, SDG&E, and PG&E: stop trying to sell power back to the grid, and instead store your daytime solar in a battery to use during the expensive evening peak. The differences between utilities affect the fine-tuning — how the battery is dispatched against each utility's specific peak window and export values — rather than the core design.
Reading your specific rate plan matters
Within each utility you may have several rate-plan options, and the right choice interacts with your usage habits, EV charging, and battery. We read your actual utility bill and usage data to match the system and battery schedule to your specific utility, rate plan, and peak window — rather than a one-size-fits-all template — because the savings live in those details.
Municipal utilities play by different rules
NEM 3.0 applies to the three big IOUs. If you're served by a municipal utility — such as LADWP in Los Angeles, or other city- and district-run utilities across the state — your net-metering and rate rules are set separately and can differ substantially from NEM 3.0. We navigate whichever utility serves your address, IOU or municipal, and design to its actual rules.
FAQ
Yes. All three large California investor-owned utilities place new solar customers on NEM 3.0 (the Net Billing Tariff) for interconnections after April 15, 2023, which pays far less for exported solar than the old NEM 2.0 rates.
Incentives and rates change. This page is kept current — but always confirm specifics for your home.
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