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9/18/25
How Does the NEM 3.0 Application Work?
When you apply for solar or add a battery in PG&E’s territory, your contractor (like Ally Electric and Solar Inc.) files an Interconnection Application. This is how it works:
Submit Interconnection Application
System details (panels, inverters, batteries) are entered into PG&E’s portal.
Required documents: site plan, single-line diagram, spec sheets.
PG&E Review
PG&E checks that your system complies with Rule 21 interconnection standards.
They confirm system size, safety ratings, and that your main panel can handle the system.
Permission to Operate (PTO)
Once approved and inspected, PG&E issues PTO.
This is the official green light for you to run your solar + storage system and start receiving NEM 3.0 credits.
What Does This Mean for Homeowners?
Under NEM 3.0:
Payback is longer without storage → Solar alone saves less because export credits are lower.
Solar + Battery is the new standard → A battery allows you to store daytime power and use it at night, making your system pay off faster.
Energy Security → Batteries provide backup power during PG&E outages.
How Ally Electric and Solar Inc. Can Help
At Ally Electric and Solar Inc. (Richmond, CA – CSLB #806465), we’ve guided hundreds of Bay Area families through the PG&E application process. We handle:
Preparing and submitting your NEM 3.0 interconnection application.
Designing systems that maximize self-consumption under new rules.
Installing trusted batteries like Tesla Powerwall, Enphase IQ, FranklinWH.
Panel upgrades and permitting for seamless integration.
Take Action Now
The sooner you apply, the sooner you can lock in savings and protect your home from rising PG&E rates.
Contact us today to get started with your NEM 3.0 solar + storage consultation.
510-559-7700
info@allyelectricandsolar.com
www.allyelectricandsolar.com
CSLB License #806465
FQAs
1. If I sell excess energy to PG&E, will PG&E charge me for it?
No — PG&E does not charge you for exporting your excess solar energy. Instead, under NEM 3.0, they give you export credits on your bill. The difference is that these credits are now much lower (around 5–8¢ per kWh) compared to the near-retail credits homeowners received under NEM 2.0. That’s why using your own solar energy or storing it in a battery provides greater savings than sending it back to the grid.
2. Will I still get the 30% Federal Solar Tax Credit under NEM 3.0?
Yes. The 30% Federal Investment Tax Credit (ITC) is completely separate from NEM policies. It applies to both solar and battery systems installed through the end of 2025.
3. Is it still worth going solar under NEM 3.0?
Yes — but the strategy has changed. Solar alone saves less than it used to because export credits are lower. Pairing solar with a battery system allows you to store your extra energy and use it during expensive peak hours, which dramatically improves your savings.
4. Can I keep my old NEM 2.0 plan if I already have solar?
Yes. If your system was approved under NEM 2.0, you are grandfathered into that program for 20 years from your Permission to Operate (PTO) date. However, adding new solar capacity may trigger a new NEM 3.0 review. Adding only a battery (without increasing solar size) usually does not change your NEM 2.0 status.
5. How long does the NEM 3.0 application take?
After submitting your application and documents, PG&E typically takes 2–4 weeks to review. Once the city inspection is complete and passes, PG&E issues your Permission to Operate (PTO).
6. Can I charge my battery from the grid under NEM 3.0?
Yes, depending on the configuration. Systems like Tesla Powerwall and Enphase IQ Battery can be set to allow or prevent grid charging. Most homeowners in PG&E territory choose “solar-only charging” to comply with NEM requirements and maximize savings.
7. What happens if I use more electricity than my solar produces?
You’ll still receive energy from PG&E, and you’ll be billed at normal rates for that extra usage. Your solar + battery system helps reduce this by covering as much of your home’s load as possible.
San Jose, Ca is #4 in the US for Solar Installations!!
The report, "Shining Cities: At the Forefront of America's Solar Energy Revolution," has recognized the top cities in the US for solar power! San Jose is in the top five at #4! San Francisco came in at #9! Clean energy is growing in the Bay Area!! Read more about it this report in, HuffPost.
With climate change becoming an ever looming danger, we hope more cities move towards renewable energy sources like solar. San Jose not only has a lot of its rooftops covered in solar panels but some of their government buildings have solar systems, too! We are proud to have been a part of this solar win.....ALLY has installed solar systems on San Jose rooftops for years!
Congratulations, San Jose!
Clean Energy - Today and Tomorrow
Yesterday, May 8th, Obama gave a speech in Mountain View, Ca. and reinforced his goals to make clean energy a bigger part of our future. The White House even has its own newly installed solar panel system on the roof! An example to the country that solar is the present as well as the future. Energy Department recently launched a $15 million-dollar program, “Solar Market Pathways”, to promote solar energy for commercial and government buildings. Read the Washington Post article, here.
Clean energy and solar expansion is growing, California has its own state incentive program to help make solar panels affordable to residents and business owners. PACE will soon be implemented across all counties to help homeowners. San Francisco and Sonoma counties currently have programs in place. ALLY is staying on top of new solar energy programs and rebates...contact us for more information.
PACE Financing: Residential Solar Energy for CA!
California is a major participant in the PACE program! Property Assessed Clean Energy (PACE) financing, an alternative to a loan and helps property owners manage the barrier of high up-front energy equipment and installation costs.
PACE financing ties the cost of home improvements to the property itself which has statistically shown to be a value-add when reselling your property. When a property owner participating in a PACE program sells the property, then the repayment obligation legally transfers with the property. The benefits of PACE financing include long-term, fixed-cost financing; loans tied to the tax capacity of the property rather than to the owner’s credit standing; a repayment obligation that legally transfers with the sale of the property; and potentially a deduction of the repayment obligation from federal taxable income, as part of the local property tax deduction. Read more here.
ALLY can help you get PACE for your solar energy system! Contact us today for info.