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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 Francisco Pushing to Create it's own 100% Renewable Utility Service and Drop PG&E
San Francisco city officials are looking into the possibility of creating their own utility out of the wreckage of PG&E who filed bankruptcy in January. The city would either buy the electrical lines from PG&E or seize them through eminent domain. If this works PG&E’s system would be the backbone of a push for a new 100% renewable full-service municipal utility. “We need to take advantage of this opportunity, because the crisis of climate change is a crisis,” San Francisco Supervisor Hillary Ronen said during a hearing. “We really need to take it to the next level, and that next level is a complete build out so that we are providing 100 percent renewable energy to all of our customers.”
More wind and solar farms would be need to be built in the surrounding areas to supply San Francisco with green power which would also create good jobs. “If we want to be truly independent in providing energy, clean energy to the residents of San Francisco, we need to really think about a local version of a Green New Deal,” Supervisor Sandra Fewer said at the same January hearing. “And that is really about building our own resources for renewable energy on our own land.” San Francisco leaders are also talking about how a utility service offered by the city would prioritize safety, quality, and affordability over profit. “When profit is the ultimate motive, then public safety comes second, then reliability comes second, then keeping costs down comes second,” Ronen said. “Profit will not be our ultimate goal.”
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.