PG&E’s Rules for Solar Changed—Here’s What You Need to Know – If you’re a Bay Area homeowner exploring solar in 2025, you’ve probably heard the term Net Billing Tariff, or NBT – sometimes referred to as NEM 3.0. This is PG&E’s new solar billing policy that replaced Net Metering (NEM) for residential customers.

And while the headlines say solar “saves less” under NBT, that’s not the whole story.

With the right design—especially with battery storage—solar still delivers strong financial returns, energy independence, and backup power. But understanding how NBT works is key to making the right decisions for your home.

Quick Recap: What Was Net Metering?

Under Net Energy Metering (NEM), homeowners earned nearly full retail credit for any solar energy they exported to the grid. It made solar incredibly cost-effective—even without a battery.

But under the new Net Billing Tariff, everything changed.

How Net Billing Works in 2025 (PG&E’s New Structure)

With NBT, you’re still credited for the extra electricity your system sends back to the grid—but the value is based on wholesale “Avoided Cost” rates that vary by the hour, day, and season.

What That Means:

• Midday solar exports (when the grid has plenty of energy) = low credits

• Evening usage (when grid demand is highest) = very high rates

• You now sell your power cheap and buy it back expensive

Without a battery, solar-only systems now earn 30–60% less value under NBT compared to NEM 2.0.

How Batteries Unlock Real Value Under Net Billing

A properly sized home battery system (like Tesla Powerwall, Enphase IQ, or FranklinWH) solves this problem by storing your solar power when rates are low and using it when rates are high.

Batteries let you:

• Store solar energy during the day
• Discharge power in the evening when PG&E prices spike
• Avoid drawing expensive electricity from the grid
• Maximize your savings while reducing reliance on PG&E

This “energy arbitrage” strategy makes batteries essential under Net Billing.

Let’s Compare: With vs. Without Battery

Real-World Example (Bay Area Home, 6.5kW System + Battery):

• With battery: $180/month savings

• Without battery: $90/month savings

• Annual Difference: ~$1,000+

And with the 30% Federal Tax Credit (still available in 2025), adding a battery is even more affordable—if installed before the deadline.

How to Design a Smart System Under NBT

Our design process for Net Billing includes:

• Time-of-Use modeling

• Battery sizing based on your usage patterns

• Load control strategy for backup power

• Forecasting ROI under PG&E’s current and future rates

We specialize in optimizing systems specifically for PG&E’s NBT, not outdated NEM strategies.

Don’t Wait—Every Hour Counts Under Net Billing

The longer you wait, the more money you lose to peak PG&E pricing. And if the 30% federal tax credit goes away after 2025, battery storage becomes even more expensive.

• We’ll help you design a system that:
• Maximizes your solar production
• Stores your power for peak pricing
• Qualifies for the current tax credit
• Keeps your home powered during outages

Want to see how Net Billing impacts your home? Let us build your custom savings plan.
Request Your Net Billing Solar + Battery Quote