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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.
New Mexico Joins Push to Go Green
The Governor of New Mexico, Michelle Grisham, signed a ground breaking bill into effect called the Energy Transition Act (ETA) last Friday. The bill mainly states that the State should be supplying 100% of its electricity to residents through renewables by 2045. It pushes for 50% by 2030, 80% by 2040, and 100% by 2045. New Mexico is the third state to create a law that strives for a fully renewable energy grid behind California and Hawaii. Rob Sargent, senior director of Environment America’s Clean Energy program, said that by passing the ETA, New Mexico is “Setting a prime example for how states can take the mantle of leadership. As sea levels and global temperatures rise higher and higher, so does Americans’ desire to address climate change as quickly as possible. Given inaction at the federal level, states are primed to lead the transition from fossil fuels to 100 percent renewable energy."
New York Governor Presents Progressive Green Building Competition
Governor Andrew Cuomo created this “Buildings of Excellence” competition and it will have three rounds of providing $10 million with up to $1 million per project. The initiative aims to advance the design, construction, and operation of green buildings in the state. This is mainly a pilot to show how advanced green building design can be adopted into the New York State Energy Conservation and Construction Code. Governor Cuomo said, "The time for addressing climate change is now, and today we are doubling down on our commitment to lead the way with a revolutionary path toward carbon-free buildings. The development of low- to zero-carbon buildings will create healthier living spaces and communities for all New Yorkers, while driving down harmful emissions from one of our highest contributing sectors - our building stock - and pushing us forward on our path to carbon neutrality." With New Yorkers paying around $35 billion annually on electricity and heating this initiative will strive to reduce consumer energy bills while at the same time creating a healthier and more affordable New York.
Neighbors May Soon Help Power Each Other
The new energy paradigm beginning to rear its head is for residential renewable energy systems to sell excess energy they produce to their neighbors. Utility companies now buy excess residential energy for little or nothing so a new system is being born. Technology is reaching a certain point where residential renewable energy systems can interact with the grid in such a way that whenever there’s high demand, a shortage, or a spike it will be responded to in an effective way automatically. If the utility companies want to stay in business this technology needs to be implemented quickly because more and more households are simply going off the grid due to the increasing benefits.