California · Net metering
California NEM 3.0 (NBT)
Sets the billing terms for excess solar generation sent back to the grid by residential customers in California -- see the credit rate and how it shapes payback below.
- Time-of-use export r…
- stated benefit
- Residential
- eligible customers
- 6.3 yr
- California baseline payback
- 4
- other California programs
What it means
In California, a 6 kW system already pays back in about 6.3 years on ~$3,049/year of modeled savings, and the California NEM 3.0 (NBT) stacks on top of that, on top of any federal credit.
- Time-of-use ex…
- stated benefit
- 6.3 yr
- baseline payback (pre-incentive)
- 5
- California programs that stack
- partial
- net-metering policy
Payback and savings are modeled from public NREL/EIA data; the program benefit is summarized from DSIRE and may change.
Program description
Under NEM 3.0, solar exports are credited at hourly avoided cost rates. Paired storage increases value significantly.
Program at a glance
- Program type
- Net metering
- Eligible customers
- Residential
- Stated benefit
- Time-of-use export rates
- State electricity rate
- 30¢/kWh
- California solar score
- 66/100
How California compares to the U.S. average
Why this incentive matters more (or less) here - California's solar fundamentals against the national average.
Source: NREL irradiance and U.S. EIA rates; payback modeled by PlainSolarData. Bars are scaled to the larger of the two values per metric.
Solar's trajectory in California
The market this incentive operates in: total installed solar capacity in California reported to the EIA.
California's solar incentive stack
How this net metering sits among California's 4 tracked programs, by type
- Rebate
Rebate
2 programs
- Tax exemption
Tax exemption
1 programs
- Net metering
Net metering
1 programs
What this shows California tracks 3 incentive types; net metering (1 program) governs the billing side, while the state's other tracked types handle upfront cost or ongoing payments.
How this incentive fits California's solar picture
The California NEM 3.0 (NBT) governs how California credits excess solar generation sent back to the grid, one of the state's DSIRE-tracked solar policies. Eligibility is scoped to residential customers, with a stated benefit of Time-of-use export rates. DSIRE lists no scheduled sunset, though enabling legislation and appropriations can still be revised year to year.
That's the backdrop this incentive works against. California averages 5.8 kWh/m²/day of usable sunlight and residential rates of 30¢/kWh, producing an estimated 10,162 kWh/year and $3,049 of annual utility offset on a typical 6 kW system costing $19,200. That baseline already implies a 6.3-year simple payback and a 25-year modeled net of roughly $57,025 before this incentive - every dollar this net metering delivers compresses that payback further.
A handful of other levers are worth checking alongside this one. California has 5 solar incentive programs indexed in DSIRE, including adjacent options like CA Active Solar Energy System Property Tax Exclusion, CA Green Tariff/Enhanced Community Renewables, Self-Generation Incentive Program (SGIP). The state's net-metering policy is classified as partial, which governs how excess generation is credited and often decides whether a given program is worth claiming for a specific household.
Your next step
- See California's full solar profile, score, irradiance, rates, payback, and every program you can claim. California solar data
- Run the savings calculator with your real bill to see how this incentive changes your own payback. ROI calculator
- See how net-metering credits are valued state by state. Net-metering guide
Estimates here are modeled from public data and are not financial advice; confirm program terms and your own eligibility before relying on a dollar figure.
Other California incentives
Frequently asked questions
What is the California NEM 3.0 (NBT)?
How does the California NEM 3.0 (NBT) work?
Who is eligible for the California NEM 3.0 (NBT)?
How does this incentive affect solar ROI in California?
Are there other solar incentives in California?
Incentive data from the DSIRE (Database of State Incentives for Renewables & Efficiency); state solar economics from NREL and the U.S. EIA. See our methodology.