NEM 3.0 Battery Savings in 2026: What Solar Owners Actually Keep
Under NEM 3.0, exported solar earns about $0.05–$0.08/kWh while on-site use offsets $0.30–$0.55/kWh. Here’s how much a battery adds, with the 2026 math and caveats.
California’s net billing tariff — NEM 3.0 — changed what solar exports are worth. The short version: exported energy earns about $0.05–$0.08/kWh, while energy you use on-site offsets retail rates of roughly $0.30–$0.55/kWh. A battery is the machine that moves one to the other.
How NEM 3.0 changes the math
- Exports: credited at avoided-cost rates that vary by hour and season — roughly 5–8¢/kWh on average.
- On-site use: avoids the full retail rate — roughly 30–55¢/kWh, highest in the evening.
- Battery: stores midday solar for the evening, capturing the retail rate instead of the export credit.
- Legal status: California courts upheld NEM 3.0 in March 2026; the policy is settled.
What a 13.5 kWh battery is worth
| Daily solar shifted | Export value at ~$0.06 | Self-consumption value at ~$0.35 | Annual gain |
|---|---|---|---|
| 8 kWh | ~$175 | ~$1,022 | ~$847 |
| 10 kWh | ~$219 | ~$1,278 | ~$1,059 |
| 12 kWh | ~$263 | ~$1,533 | ~$1,270 |
Those are gross values before efficiency losses and before any local rebate. On a $14,500 installed battery, the 10 kWh/day case is roughly a 14-year marginal payback — better than exporting, but still a long one. Add a local rebate, wider evening rates, or backup value and the case improves quickly.
How to size for NEM 3.0
- Start with evening usage, not array size. The battery’s job is covering the expensive hours.
- One 13.5 kWh battery covers a typical California home’s 7–12 kWh evening/critical-load profile.
- If you have an EV or electric heat, plan for more capacity or expect to import during long evenings.
- Check your rate plan: the difference between peak and off-peak prices sets the ceiling on savings.
Enter your export rate, retail rates and daily surplus — the calculator shows what the battery adds per year and how long it takes to pay back.
Quick answers
Does NEM 3.0 apply to existing solar owners?
Existing NEM 2.0 customers generally keep their original terms for a set period. New systems and new applications are placed on the net billing tariff. Check your utility’s interconnection agreement before assuming which regime you are on.
Is a battery required under NEM 3.0?
No — solar works without one. But without a battery, most of your generated value is exported at low avoided-cost rates. The battery is optional hardware with an increasingly central economics role.
Sources
- Discount Solar — NEM 3.0 explained: California net billing in 2026
- NRG Clean Power — NEM 3.0 is final (2026)
- Helios Energy — Solar payback period California 2026
- SolarReviews — Battery attachment rates (2026)
All figures checked November 2026. Utility tariffs and program rules vary; verify with your utility.