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
Visit the official program page

How California compares to the U.S. average

Why this incentive matters more (or less) here - California's solar fundamentals against the national average.

Irradiance
California: 5.8 kWh/m²/day
U.S. avg: 4.82 kWh/m²/day
Electricity rate
California: 30¢/kWh
U.S. avg: 15.98¢/kWh
Modeled payback
California: 6.3 yr
U.S. avg: 14.2 yr

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.

-5000 MW0 MW5.0 GW10.0 GW15.0 GW20.0 GW25.0 GW 19901995200020052010201520202024 22.6 GW
California now has about 22.6 GW of installed solar, the backdrop programs like this one are built on.

Source: U.S. Energy Information Administration, installed solar nameplate capacity As of 2024

California's solar incentive stack

How this net metering sits among California's 4 tracked programs, by type

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.

Source DSIRE incentives registry As of 2024

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.

Frequently asked questions

What is the California NEM 3.0 (NBT)?
The California NEM 3.0 (NBT) is a net metering available to residential solar customers in California. The stated benefit is Time-of-use export rates.
How does the California NEM 3.0 (NBT) work?
Under NEM 3.0, solar exports are credited at hourly avoided cost rates. Paired storage increases value significantly.
Who is eligible for the California NEM 3.0 (NBT)?
The program is available to residential customers in California. Check the official program page for current eligibility requirements and deadlines.
How does this incentive affect solar ROI in California?
California has an estimated 6.3-year payback for a 6 kW system before incentives, with about $3,049/year in modeled savings. A net metering like this lowers upfront cost or raises annual return, shortening that payback. Run the calculator for a figure based on your own bill.
Are there other solar incentives in California?
Yes - California has 5 solar incentive programs tracked in DSIRE, including CA Active Solar Energy System Property Tax Exclusion, CA Green Tariff/Enhanced Community Renewables, Self-Generation Incentive Program (SGIP). State programs are designed to stack on top of any available federal solar tax credit rather than replace it.

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.