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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.
Wind-Solar Coming in Hot
In Minnesota Juhl Energy is pioneering a new way to create highly efficient renewable energy farms. This is being done by pairing one or more wind turbines with a solar array. When it’s done like this only one inverter and one grid connection is needed which reduces equipment costs compared to doing two separate projects. The price of solar has dropped as well so that’s another reason why companies are looking to add it to their wind power projects. It’s a match made in heaven since the solar will be strong during the day and the wind will flex its muscles mainly at night.
Trump Administration again Seeking to Cut Renewable Funding
The Office of Energy Efficiency and Renewable Energy budget is under attack again by the Trump Administration which is seeking to cut it from $2.3 billion to $700 million. With Democrats now ruling the house it’s likely the proposal won’t pass. “It’s a shutdown budget,” said Mike Carr, who served as the No. 2 official within the energy division under President Barack Obama. “That’s apparently what they (Trump Administration) want to signal to their base -- they still want to shut these programs down.”
Programs such as research into technology for electric vehicles, research of using waves to create power, technology to make wind power competitive with coal, cutting the costs of LED products, and much more would be under the chopping block if this bill were to go through.
Compromise is Reached on Property Assessed Clean Energy (PACE) Program
The Property Assessed Clean Energy (PACE) program let’s you pay for home energy upgrades through your property taxes and lets you write off the interest in most cases. At the same time some PACE programs have high interest rates and invoke liens on homes. Over 180,000 home owners nationwide have used this program and PACE has been under attack recently due to some predatory lenders using the PACE program in an unethical fashion. After behind the scenes work between Senate staffers, consumer groups, mortgage lenders, and PACE proponents, a compromise has been reached through a large banking bill that was overwhelming supported by the Senate Banking Committee. It’s not clear what changes we’re made but this is a rare win for the solar industry after the Trump administration and Republicans have killed the Clean Power Plan and stalled energy-efficiency standards. What all homeowners should know moving forward is to be very careful with any PACE loan that is offered because of everything that has happened. PACE does have potential to offer a great solutions for home energy upgrades but now it’s clear that it can be dangerous as well so this is another lesson for homeowners to be even more careful whenever taking a loan for energy upgrades.