

If you've been told solar "doesn't work anymore" because of NEM 3.0, you've been told half the story. The math changed in April 2023, but solar in San Diego still beats paying SDG&E — especially when you pair panels with a battery. Here's what actually changed and what it means for your home.
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NEM 3.0 (officially the Net Billing Tariff) replaced NEM 2.0 for every new SDG&E solar customer after April 15, 2023. The biggest shift: export credits dropped roughly 75%. Under NEM 2.0, every kWh you sent to the grid was credited at retail rate (around 30¢). Under NEM 3.0, exports are credited at "avoided cost" — usually 5–8¢ during the day, with higher value during peak evening hours from 6–9 PM.
In March 2026, the California Court of Appeals upheld the NEM 3.0 framework, so the rules aren't going anywhere soon.
Without a battery, your panels send most of their daytime production to SDG&E at low export rates. Then you buy power back at 40¢+ per kWh in the evening. The math doesn't work.
With a battery, you store your own daytime solar production and discharge it during peak evening hours when SDG&E rates are highest. Industry data shows solar-only payback in California now runs 8–10 years, while solar + battery payback is 7–8 years — batteries actually shorten payback under NEM 3.0.
SDG&E rates are among the highest in the country, averaging 30–40¢ per kWh depending on tier and time of use. That's the single most important factor in San Diego solar economics — and it's why solar still works here even under tougher net billing rules.
A properly designed solar + battery system in San Diego typically offsets 70–90% of a homeowner's electric bill, with payback in 6–8 years for cash purchases. Financed systems often start saving from month one because the loan payment is lower than the previous SDG&E bill.
Most installers still design systems the old way — oversize the array, push everything to the grid, hope for the best. That's a losing strategy under NEM 3.0.
We design every system around your actual SDG&E usage profile and time-of-use schedule. We size the battery to capture peak evening rates. And because we handle roofing too, we make sure the roof is ready for a 25+ year solar system before anything goes up.
Am I grandfathered into NEM 2.0?
If you submitted a complete interconnection application before April 14, 2023 and your system received Permission to Operate by April 15, 2026, yes — you're locked into NEM 2.0 for 20 years from your interconnection date. Selling your home doesn't change that.
Can I add a battery to an existing NEM 2.0 system without losing grandfathering?
Yes. Adding battery storage to an existing NEM 2.0 system does not affect your grandfathered status.
Is solar still a good investment in 2026?
In San Diego, yes — when designed correctly. SDG&E rates have risen every year for over a decade. A solar + battery system locks in your energy costs for 25+ years.
We'll review your SDG&E bill, design a system that works under NEM 3.0, and show you the actual numbers. No pressure.
If your home is in San Diego County, there’s a good chance we’ve worked on a project nearby.
Not sure whether we service your location, just ask!
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