How Net Billing Works

For systems interconnected on April 15, 2023 or later, please see below:

PG&E transitioned to the new Net Billing Tariff (otherwise known as NEM 3.0), or NBT on April 15, 2023. All new solar systems, as well as any system expansions or replacements that increase the original system size by more than 1 kW, will now be interconnected under the NBT.

Solar systems provide the best financial return when the home uses as much of the clean energy the system generates as possible. A solar system’s production first feeds your home’s electrical loads in real time, and then exports excess energy to the grid. Luminalt designs NBT solar systems to maximize the amount of solar power used by the home and minimize the solar energy the system exports to PG&E’s grid.

The NBT was designed to encourage homeowners to install battery storage with their solar system by reducing the value of energy a solar system sends to PG&E’s grid. With a solar paired battery system, much of the solar energy that doesn’t power the house charges the battery. When the solar system isn’t generating enough power to run the house, the house uses the power stored in the battery. Importantly, solar paired batteries will also provide power to a home during grid outages.