NEM 3.0

Net Metering in California

Current NEM policy, export rates, and impact on solar payback for California homeowners.

NEM Export Rate

$0.065

per kWh

Avg Retail Rate

$0.320

per kWh

% of Retail

20%

compensation

Policy Status

Final

since 2023-04

System Limit

Up to system size limits

max eligible

NEM Policy Details — California

How California compensates your excess solar generation

NEM 3.0 Final

NEM 3.0 (Net Billing Tariff) confirmed final — legal challenge defeated March 2026. Export credits reduced to $0.05-$0.08/kWh (avoided cost), down ~75-85% from NEM 2.0's $0.30-$0.40/kWh near-retail rate. NEM 2.0 systems grandfathered until 2031. Battery storage essential to maximize savings under NEM 3.0.

NEM Rate$0.065/kWh
Retail Rate$0.320/kWh
Savings Gap-25.5c/kWh
Annual True-UpNo

Source: CPUC Decision 22-12-056; court challenge defeated March 2026 · Effective: 2023-04

Calculate Your NEM Savings in California

$

NEM Rate Comparison

$0.00 California: $0.065 $0.320 (retail)

California's NEM rate is 20% of the retail electricity rate — significantly below retail, consider self-consumption or battery storage.

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