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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.
PG&E Offering $800 Electric Vehicle Rebate
Right now you can receive an $800 rebate from PG&E under the right circumstances for having an electric vehicle. As long as you’re an active client of PG&E, own or lease an eligible plug-in electric vehicle, and have your car’s registration up to date you are eligible for this rebate. However, PG&E does say funds are limited and it’s first come serve so it’s hard to say how long this will last. Also, you can only get one rebate per car in its lifetime so you may wanna save it for another time if you’re not strapped for cash right now. This rebate comes from a State of California program called the Low Carbon Fuel Standard. The goal of this program is to reduce greenhouse gas emissions from transportation by encouraging the adoption of electric vehicles. Clean electricity used to fuel electric vehicles has helped reduce green house gas emissions by 66 percent so far in California!
Solar and Wind Production Surpasses All other Energy Sources this January
The Federal Energy Regulatory Commission (FERC) just released data that shows new solar and wind generation created for the first month of this year was more than any other energy source including natural gas. FERC’s Data also shows that all combined renewables (i.e., solar, wind, hydro power, geothermal, biomass) now produces 21% of the total US generating capacity. That’s up from 16% five years ago so it’s going up about a percentage point every year. Total renewable generation capacity is at 254 GW and looks to surpass the total generation by coal in the US as well which is at 264 GW by the end of this year. This is all very exciting news for the energy revolution as all signs are pointing green!
US Solar Market Staying Strong
For the third year in a row the US solar industry installed over 10GW of solar capacity in residential, commercial, and utility companies combined. The Solar Energy Industries Association (SEIA) President and CEO Abby Hopper said, “The total amount of solar installed in America is on track to more than double in the next five years, proving solar’s resiliency and its economic strength. It’s clear, this next decade is going to be one of significant growth.” Residential solar has seen growth is in the last five years and did great in 2018 with almost 315,000 homes adding a solar system. Total US solar capacity now stands at 62.4 GWdc, about 75 times more than was installed at the end of 2008!