Net Billing Tariff (NEM 3.0)
California's current rooftop-solar compensation rule. Credits for exported solar are valued at hourly 'avoided cost' rates, not the retail rate — which makes self-consumption and batteries central to the economics.
Value
Export credits average roughly $0.05–$0.08/kWh blended across the year (vs. ~$0.30/kWh retail under the old NEM 2.0) — about a 75% cut. Exact rate varies by hour, season, and utility via the CPUC Avoided Cost Calculator.
Who receives it
Homeowner (bill credits).
Eligibility
Applies to new solar interconnections with the three IOUs — PG&E, SCE, SDG&E. The NEM 2.0 grandfathering window has closed (final Permission-to-Operate deadline was April 15, 2026), so new systems can only enroll in NEM 3.0. Publicly owned utilities (LADWP, SMUD, etc.) set their own, often more favorable, rules.