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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.
Net Metering - What is it?
What is Net Metering? When your solar system generates energy it offsets the cost of your power usage through your utility company.
How it works:
When your system is generating more power than you use, it flows back into the utility grid making the meter ‘run backwards' and creating a possible credit to your account. When you use more energy than your system generates, you take energy from the utility grid. A specific meter will be installed to measure the energy used by your home.
Net Metering allows customers with solar systems to cut down on energy costs and can even zero out their rates. It also is a great way to measure your energy usage and performance stats of your solar system.
In the Bay Area, PG&E is the major energy provider. They currently provide two ways to apply Net Metering;
- Standard Rate Schedule: cost per kilowatt is a set number and will not change by time of day
- Time-of-Use Rate Schedule: cost per kilowatt varies by season per day. Peak Hours apply.
To read more about these schedules click here
With a Net Metering agreement with your utility company you can elect to receive a monthly bill for your net usage or ‘settle’ your account after a 12 month period.
Have questions about going solar and lowering your energy costs to zero?
Call us today! 510.559.7700
Hurray! Our Pres. Metin Saglam is BPI Certified!
BPI (Building Performance Institute) is an organization spanning all 50 states. Individuals with BPI’s certification are experienced in the standards used for house-as-a-system approach to improving the performance of existing homes – an approach proven to reduce home owner annual utility bills by as much as 20% or more.
ALLY's president, Metin Saglam is now a BPI Certified Professional! BPI certified professionals can help you improve your home's energy efficiency while providing important safety functions such as mold prevention, carbon monoxide testing, and combustion appliance safety checks. They an also help prepare your home for solar, geothermal, or other types of energy upgrades.
Call us today for a home energy efficiency consultation! 510.599.7700
Bay Area Electric Vehicles - Top Reasons We Buy
The California Center for Sustainable Energy collected data on their Clean Vehicle Rebate Project (CVRP) applicants who purchased their vehicle between September 2012 and April 2014. One of the areas they highlighted in this study are the driving factors for choosing to buy an electric vehicle. In the Bay Area, just over 3,000 people were asked and the top reason was savings on fuel costs. With gas prices shooting higher every day this is not a surprise. Other top reasons included; reducing environmental impact and HOV lane access.
Another important driving factor for Bay Area drivers was the Federal Tax incentive and the CA State Rebate granted to electric vehicle buyers. 40% of buyers noted that these programs allowed them to choose to go electric. Read more about the study, here.
ALLY has a fleet of electric vehicles as well! We can install electric vehicle charging stations for you at your home or business! Give us a call at 510.559.7700! Or contact us for a quote, here.