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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:

  1. Submit Interconnection Application

    • System details (panels, inverters, batteries) are entered into PG&E’s portal.

    • Required documents: site plan, single-line diagram, spec sheets.

  2. 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.

  3. 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.


Metin Saglam Metin Saglam

Battery Storage a Game Changer in Energy Revolution

Lower costs of solar systems are helping the green energy revolution push forward but it’s the battery storage technology that’s really taking the movement to another level. Utility companies far and wide big and small see the potential of renewable energy suppliers with a quality battery storage system. Energy storage technology is really where a big paradigm shift can occur. Arizona plans to have 450 MW of battery storage available by 2021 and a additional 400 MW by 2025 so they can use stored solar energy for high demand times in the evening. These projects are also allowed to use the 30% federal tax incentive so there’s a high upside.

Renewable energy resources, boosted by robust battery deployments, will most likely become the primary source of generation of electricity in the United States over the next 10 years. Reluctance appears to be giving way as proactive and innovative solutions are brought to the market. More and more utilities are placing solar and storage on their near-term and long-term road maps!

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Study Shows Wind and Solar More Cost Effective than Coal

According to a new report from Energy Innovation it would be cheaper to build new solar and wind plants compared to keeping 74% of US coal plants running. “This is not a fantasy of a supercomputer. This is really what’s happening today,” said Eric Gimon, a senior fellow at Energy Innovation. “The crossover between new renewable and coal running costs is just one important part of shutting down existing coal plants. Any decision on how to proceed will require further modeling of grid impacts and alternative sources of reliability services.” This study is meant to start the beginning of a larger conversation among policymakers, regulators, and utilities about transition plans and what justifications remain for continuing to use increasingly cost-ineffective coal. 

“We hope that by looking at the local resources available, policymakers and other stakeholders can start to think about ways of creating transition plans for those coal communities at the same time that they’re considering new options,” said Mike O’Boyle, Director of Electricity Policy at Energy Innovation. “They need to start thinking today about how to achieve those savings. The longer they wait, the more money they leave on the table and the more harm they’re allowing to come to the environment.” This is a highly complex situation though because of the reality of the grid and all the intricacies that come along with it. However, it’s exciting to see a study come out like this because it’s further evidence toward the argument of ending our reliance on fossil fuels!

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Struggling to Control PG&E

PG&E is hoping to use its bankruptcy to reduce its liabilities and become a more stable company. However, it looks like they may not have much control over the outcome. Investors, lawmakers, regulators and customers are trying to take the reins on the situation even though a judge has not even had a chance to look significantly into PG&E’s financials. Also, companies that sell power to PG&E are requesting that federal regulators intervene into the bankruptcy to make sure the utility can’t renegotiate its contracts with suppliers. It’s a pretty messy situation when the California Public Utilities Commission starts studying options that include breaking up PG&E, which serves 16 million people, or turning all or parts of it into a government-owned utility. “This is the most complicated and difficult decision environment I’ve ever seen for a bankruptcy case,” said Jared A. Ellias, a professor at the University of California’s Hastings College of the Law. “I can’t think of a bankruptcy that had this many powerful parties with unclear bargaining power.” All in all this is a very difficult situation with a lot of moving parts that will take years to fully resolve.

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