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10/02/2025
PG&E NEM 3.0 and Solar Batteries: How California Homeowners Can Maximize Savings in 2025
If you live in Northern California, you’ve probably heard of PG&E’s NEM 3.0 program and the changes it brought to solar customers in 2023. Many homeowners are now asking the same question: Is solar still worth it in 2025?
The short answer is yes — but the way you design your system matters more than ever. Under NEM 3.0, solar plus a battery is the winning combination for lowering bills, improving energy independence, and protecting your home during outages.
In this guide, we’ll break down what changed, how it affects your PG&E bill, and why batteries like the Tesla Powerwall 3, Enphase IQ 10C, and FranklinWH aPower are becoming essential for California homeowners.
What Changed Under PG&E’s NEM 3.0?
Under the previous program (NEM 2.0), homeowners earned near-retail credit for each kilowatt-hour they exported back to the grid. That meant solar panels alone could dramatically cut electricity bills — even without a battery.
With NEM 3.0, the value of exported electricity has been reduced by roughly 75% on average. Instead of being credited at close to the retail rate, exported power is compensated at the “avoided cost” rate, which is based on wholesale electricity prices.
Daytime exports (midday) are worth much less.
Evening energy (4 p.m. – 9 p.m.) is expensive, and that’s when solar panels aren’t producing.
This shift makes it harder to save money with solar panels alone, because you’re sending energy to the grid when it’s cheap and buying energy back when it’s expensive.
Why Batteries Are the Key to Savings
The new rules change the math — but they also highlight the value of solar battery storage. A battery allows you to:
Store excess solar power during the day.
Use it in the evening when PG&E’s rates are highest.
Reduce exports at low daytime rates.
Cut peak demand charges.
In other words, batteries help you keep more of the energy you generate, shifting your savings from export value to self-consumption value.
Even better: batteries provide backup power during blackouts — something many Bay Area homeowners worry about, especially after recent wildfire seasons and earthquakes.
Incentives in 2025: ITC + SGIP
The cost of adding a battery has dropped significantly thanks to federal and state incentives.
Federal Tax Credit (ITC):
The 30% credit applies to solar and batteries through at least 2032.
Stand-alone batteries also qualify (even if you already have solar).
California SGIP (Self-Generation Incentive Program):
Rebates are still available in 2025, especially for homes in fire-threat or outage-prone areas.
Typical savings: $2,000–$5,000 per battery.
Together, these incentives can cut the upfront price of a battery system by 30–40%, making it a financially smart move under NEM 3.0.
Real-World Example: Bay Area Home
Let’s look at a simple case study.
System size: 7 kW solar + 10 kWh battery
Without battery: Home exports most power at midday when rates are low. Monthly bill reduction: ~40%.
With battery: Stored energy offsets evening rates (often $0.40–$0.50/kWh). Monthly bill reduction: ~65–70%.
Over a 10-year span, the homeowner saves thousands more by adding a battery. And during PG&E outages, the battery provides reliable backup for lights, refrigeration, internet, and even essential medical devices.
Choosing the Right Battery: Tesla, Enphase, or FranklinWH?
At Ally Electric & Solar, we install several top battery brands. Each has strengths depending on your home’s needs.
Tesla Powerwall 3
High capacity (~13.5 kWh per unit).
Built for whole-home backup.
Sleek design, widely recognized.
Enphase IQ Battery 10C
Modular — you can add units over time.
Works seamlessly with Enphase microinverters.
Good option for homes starting with a smaller system.
FranklinWH aPower + aGate
Strong load management features.
Robust warranty and growing popularity in California.
Flexible for both new installs and retrofits.
Which is best? It depends on your household usage, backup needs, and budget. Our team helps homeowners compare options with clear side-by-side analysis.
Beyond Savings: Energy Independence and Resilience
While much of the NEM 3.0 discussion is about dollars and cents, the bigger picture is energy independence.
Batteries make you less dependent on PG&E’s shifting rate structures.
You gain peace of mind during outages — whether from wildfires, storms, or earthquakes.
Electrification trends (EVs, heat pumps, induction stoves) mean households will rely even more on electricity. Pairing solar with storage ensures you’re ready for that future.
Final Thoughts
PG&E’s NEM 3.0 has changed the landscape, but it hasn’t made solar a bad investment. It’s simply shifted the smart strategy from solar alone to solar plus battery storage.
With the 30% federal tax credit and SGIP rebates still in place, 2025 is an excellent year to invest. By adding storage, you can:
Maximize bill savings.
Gain resilience during outages.
Future-proof your home for the electrification era.
Call to Action
At Ally Electric & Solar, we specialize in designing solar + battery systems tailored to California homes. Whether you’re considering the Tesla Powerwall 3, Enphase IQ 10C, or FranklinWH aPower, our team can help you choose the right solution for your budget and lifestyle.
Contact us today for a free consultation and see how much you can save under PG&E’s new rules.
9/30/2025
Heat Pumps and Solar PV + Energy Storage: Are They a Good Match?
In recent years, homeowners across California and beyond have been exploring how to cut energy costs and reduce carbon emissions. Two technologies often come up in the same conversation: heat pumps and solar photovoltaic (PV) systems with energy storage (ESS). But how do these solutions relate, and is combining them really the right move for every household?
What Are Heat Pumps?
A heat pump is an electric appliance that can both heat and cool a home by transferring heat rather than generating it directly.
Heating mode: extracts heat from the outside air (even in cold weather) and moves it indoors.
Cooling mode: works like an air conditioner, removing heat from indoors and releasing it outdoors.
Because they move heat instead of producing it, heat pumps can achieve efficiencies of 200%–400%, compared to around 90% efficiency for electric resistance heaters or gas furnaces.
How Much Electricity Do Heat Pumps Use?
Electricity consumption depends on:
System size (measured in tons or BTUs).
Climate zone (mild Bay Area vs. colder mountain regions).
Home insulation and ducting.
On average:
A typical residential heat pump uses 2,000 to 4,000 kWh per year for heating and cooling.
That translates to 15%–30% of a household’s total annual electricity use in California.
In colder climates, usage can be higher, especially if backup resistance heating is needed.
For comparison, the average California household consumes about 6,500–7,000 kWh annually (without electric vehicles or large electrification loads). Adding a heat pump can increase that number by 25%–50%, depending on usage.
Why Pair Heat Pumps With Solar + ESS?
Offset Higher Electricity Demand
Without solar, switching from gas heating to a heat pump can cause a noticeable jump in your electric bill.
A properly sized solar PV system can offset most or all of the added consumption.
Take Advantage of Efficiency
Heat pumps are already efficient compared to gas furnaces or electric resistance heating.
Running them on solar power makes heating and cooling nearly emissions-free.
Resiliency With Storage
Energy storage systems (like Tesla Powerwall or Enphase IQ Battery) allow homes to keep heating or cooling during outages.
In California, where blackouts and Public Safety Power Shutoffs (PSPS) are a concern, this adds peace of mind.
Peak Shaving
Many utilities have time-of-use (TOU) rates, with higher costs in the late afternoon/evening.
Pairing a heat pump with storage lets homeowners shift usage and avoid peak pricing.
Is It Always a Good Solution?
It depends on your situation:
Good fit if:
You live in a region with mild winters (like most of California).
You’re planning to replace aging HVAC equipment or gas furnaces.
You want to reduce reliance on fossil fuels and improve indoor comfort.
You already have or plan to install solar PV with sufficient capacity.
Potential challenges:
In very cold climates, heat pumps may need backup resistance heating, which increases energy use.
Upfront costs for both a heat pump and a solar + storage system can be significant.
System sizing is critical — undersized solar arrays may not cover the added load.
The Bottom Line
Heat pumps and solar PV + ESS are complementary technologies. Heat pumps make homes more energy-efficient and all-electric, while solar plus storage ensures that extra demand is met sustainably and resiliently. For many California homeowners, combining the two is a smart long-term strategy — but the right solution depends on climate, home size, and budget.
Before making the switch, it’s best to consult with both a licensed HVAC contractor and a solar professional who can model your home’s projected energy use and recommend the right system size.
9/24/2025
Earthquakes Remind Us: Why Solar + Battery Systems Are Essential for Bay Area Homes
Just a few days ago, the Bay Area was shaken by a 4.3-magnitude earthquake near Berkeley/Pinole. While this was a moderate event, it served as an important reminder that we live in an earthquake-prone region where power outages can occur at any time. As an electrical engineer working with residential energy systems, I see firsthand how families are left vulnerable when the grid fails — and why solar panels combined with energy storage systems (ESS) are no longer a luxury, but a necessity.
How Earthquakes Affect the Grid
During an earthquake, even a moderate one:
Utility infrastructure is vulnerable. Power lines, substations, and transformers can be damaged, leaving neighborhoods in the dark.
Gas pipelines pose safety risks. This makes electric cooking and heating a safer and more reliable option during emergencies.
Restoration can take days. Depending on the severity, PG&E crews may need hours — even weeks — to restore service to all customers.
For homeowners, that means no lights, no internet, no heating, and no way to safely store food unless they have a backup system.
Why Energy Storage Systems (ESS) Matter
When paired with solar panels, battery storage systems like the Tesla Powerwall 3, Enphase IQ, or FranklinWH aPower give families independence from the grid.
From an engineering perspective, here’s what these systems can provide after an earthquake:
2+ Weeks of Critical Power: A well-sized battery can keep essential loads running — refrigeration, lighting, phone charging, internet routers, and medical equipment — for up to two weeks when managed carefully.
Safe Cooking & Heating: Electric induction cooktops, microwaves, or small space heaters can run off stored solar power, eliminating reliance on gas.
Automatic Isolation from the Grid: Modern ESS units include rapid shutoff and islanding capability, which means when the grid goes down, your home seamlessly switches to backup power.
Recharge Daily with Solar: Unlike a gas generator that needs constant refueling, a solar + battery system recharges every morning — ensuring sustainability for as long as the grid is down.
Real-World Resilience for Bay Area Families
Living in the Bay Area means preparing for the unexpected. With earthquakes, wildfires, and storms becoming more common, resilience isn’t optional — it’s essential.
Families who invest in solar + battery systems are not just saving on monthly utility bills; they are also investing in:
Peace of mind during natural disasters
Energy independence from PG&E’s outages and rate hikes
A cleaner, safer alternative to gas generators
Final Thoughts
The Berkeley/Pinole earthquake is a reminder that the grid is fragile, but your home doesn’t have to be. With solar panels and a properly designed energy storage system, you can keep life moving — cooking meals, heating your home, and staying connected — even when the lights go out across the city.
At Ally Electric and Solar, we specialize in designing and installing solar + battery systems that protect families during outages. If you’d like to learn how to make your home more resilient against earthquakes and other emergencies, contact us today for a free consultation.
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.
Q1 2024 Solar Market Overview: A Record-Breaking Quarter and Its Impact on Homeowners
As we enter 2024, the U.S. solar market has made headlines with astonishing growth, installing 11.8 GW of solar capacity in the first quarter alone. This not only sets a record for the first quarter of any year but also marks the second-largest quarterly total in the history of the solar industry. At Unicorn Solar, we understand that homeowners facing high utility bills are particularly interested in how these developments can lead to long-term savings and energy independence.
Solar Power: A Solution to Rising Utility Costs
In Q1 2024, solar energy accounted for 75% of all newly added electricity-generating capacity in the U.S. This shift underscores how more and more homeowners are turning to solar as an effective solution to combat rising electricity costs. With solar panel systems, you can significantly reduce or even eliminate your monthly utility bills, making a proactive choice for your financial future.
Domestic Manufacturing Boost Promises Benefits
Another encouraging trend is the increase in domestic solar module manufacturing capacity, which rose to 26.6 GW in Q1 2024 from 15.6 GW in Q4 2023. This growth is essential as it signifies a move toward locally made solar solutions that can help ensure reliable supply chains and potentially lower costs for homeowners. As this capacity ramps up, you can expect a greater variety of affordable solar options available.
State Highlights: Where Homeowners Can Benefit
Florida and Texas emerged as leaders in solar installations during Q1 2024, with 2.7 GW and 2.6 GW installed, respectively. These states have made substantial investments in utility-scale solar projects that can help lower energy prices for residents. If you live in these regions, you have a unique opportunity to explore solar options that could reduce your reliance on traditional electricity sources.
Residential Sector Challenges and Opportunities
However, the residential solar segment faced challenges, with installations dropping to 1.3 GW—the lowest since Q1 2022. This decline is primarily due to regulatory changes, particularly in California, where shifts in net energy metering have led to confusion and hesitancy among homeowners. If you’ve been contemplating solar, now is the time to act as new regulations may impact future installations and financial incentives.
Robert Benedict shared his personal experience, highlighting how even solar users could see increased bills when not considering their entire utility strategy. This emphasizes the importance of making informed choices and potentially advocating for better pricing structures with local utilities.
Commercial and Community Solar: Options for Homeowners
While the commercial solar segment remained steady, with 434 MW installed in Q1 2024, and the community solar sector also matching last year's figures, both areas experienced a decline from Q4 2023. Homeowners interested in community solar arrangements can still find options that allow them to benefit from shared solar resources, even if they cannot install systems on their own properties.
Utility-Scale Solar: A Game-Changer for Energy Rates
Utility-scale solar installations soared to 9.8 GW in Q1 2024—the largest first quarter for this segment ever recorded. These large projects are critical in reducing energy costs for consumers, as they create economies of scale that can lead to lower electricity prices across the board. As these projects come online, it’s an excellent opportunity for homeowners to take advantage of lower rates driven by renewable energy growth.
Navigating Policy Changes for Homeowners
In recent months, the solar industry has faced various policy shifts, including increased tariffs on imported solar modules. While these changes may appear daunting, the overall outlook remains favorable for homeowners interested in solar. The market is expected to maintain a consistent installation pace, allowing for increased competition that can ultimately lower costs for consumers.
Looking Ahead: Your Path to Energy Savings
Despite the projected flat growth in the solar market over the next couple of years, there’s still a considerable opportunity for homeowners to transition to solar. As demand stabilizes and residential solar options become more diverse, now is the perfect time to explore how solar can offset your high utility bills.
By investing in solar energy, you not only take control of your energy costs but also contribute to a more sustainable future. Don’t wait for changes in the market or regulations—reach out to Unicorn Solar today. Our team is here to help you navigate your options, assess your unique needs, and empower you with the right solutions to make solar work for your home. Together, we can turn your high utility bills into energy savings and a brighter tomorrow.
The Dangers of Federal Pacific Electric Panels (FPE) and Why You Should Replace Them
When it comes to home safety, few things are as critical as your electrical system. One component that many homeowners might not even think about—but should— is the electrical panel. Specifically, homes equipped with Federal Pacific Electric (FPE) Stab-Lok panels face a higher risk of electrical fires and other safety hazards. In this blog post, we'll explore why FPE panels are dangerous and why replacing them is essential for the safety of your home.
What is a Federal Pacific Electric Panel?
Federal Pacific Electric (FPE) was a popular manufacturer of circuit breaker panels from the 1950s through the 1980s. Their Stab-Lok panels were installed in millions of homes across the United States. Unfortunately, over the years, these panels have been linked to serious safety concerns, including a high rate of failure in properly shutting off electricity during a short circuit or overload.
Federal PACIFIC PANEL
The Design Flaw: Why FPE Panels Are Dangerous
The primary issue with FPE panels lies in their circuit breakers. Normally, if there is a surge of electricity or a short circuit, a circuit breaker is supposed to "trip," cutting off the flow of electricity to prevent overheating and fires. However, FPE Stab-Lok panels have been shown to fail at tripping properly, sometimes as much as 60% of the time.
This means that, even in dangerous situations, electricity may continue to flow through the wiring, leading to overheating, potential electrical fires, and other hazardous conditions. Simply replacing the breakers does not fix the design flaw in the panel itself, leaving homes vulnerable to these risks.
Common Problems with FPE Stab-Lok Panels:
Breakers Fail to Trip: The most dangerous issue is the failure of breakers to trip during electrical surges, leading to overheating.
Overheating and Fire Hazards: With electricity continuing to flow unchecked, there’s a significantly higher risk of fire.
Loose Connections: Poor design can lead to loose connections within the panel, which exacerbates the fire risk.
Outdated Technology: These panels were built decades ago and don’t meet modern safety standards.
How to Know If Your Home Has an FPE Panel
If your home was built between the 1950s and 1980s, there’s a chance it might have a Federal Pacific Electric panel. You can check by looking at your main electrical panel—often found in garages, basements, or utility rooms—and looking for the brand name "Federal Pacific Electric" or "Stab-Lok" on the cover or the breakers.
If you’re unsure or concerned, it’s always best to have a licensed electrician inspect your panel.
Why You Should Replace Your FPE Panel
Even though FPE panels have been in homes for decades, that doesn’t mean they’re safe. The risks increase as the system ages, and continued use of an FPE panel is a serious liability. Most electricians, home inspectors, and insurance companies recommend replacing these panels due to their well-documented hazards. Many insurance companies may even deny coverage or raise premiums if they find an FPE panel in your home.
We Can Help
At Ally Electric And Solar, we specialize in electrical panel replacements, including upgrading outdated and dangerous FPE Stab-Lok panels. Our licensed and certified electricians will ensure your new panel meets current safety standards, giving you peace of mind and protecting your home from electrical hazards.
Why Choose Us?
Licensed and Insured: We are fully licensed, insured, and committed to providing top-quality service.
Safety First: We prioritize the safety of your home and your family by installing modern, reliable electrical panels.
Expertise: With years of experience, we know how to properly assess, replace, and upgrade electrical panels with minimal disruption to your home.
Conclusion
If your home has a Federal Pacific Electric panel, it's time to consider replacing it. The risks far outweigh the costs, and upgrading your electrical panel ensures your home meets today’s safety standards. Don’t wait until an electrical issue turns into a fire—take action now.
Contact Ally Electric And Solar today at (510) 559-7700 for a consultation and keep your home and family safe.
Understanding the Electrical Survey Requirement for Home Insulation
Why Is an Electrical Survey Required?
According to Article 324-4 of the National Electrical Code (NEC), 1990 Edition, and Part 3 of Title 24 of the California Code of Regulations, a thorough electrical survey is mandatory before insulating your home. This measure is designed to protect both your home and its occupants, ensuring that the existing electrical wiring is safe and reliable.
When it comes to home insulation, ensuring that your electrical system is up to code is crucial. If you're planning to insulate your attic, walls, or floors, you might encounter a notice like the one below. This electrical survey is not just a formality; it’s a necessary step to comply with safety regulations.
Why Is an Electrical Survey Required?
According to Article 324-4 of the National Electrical Code (NEC), 1990 Edition, and Part 3 of Title 24 of the California Code of Regulations, a thorough electrical survey is mandatory before insulating your home. This measure is designed to protect both your home and its occupants, ensuring that the existing electrical wiring is safe and reliable.
Key Points of the Electrical Survey Notice
1. Assessment of Existing Wiring
The electrical contractor conducting the survey will evaluate your current wiring. The condition of your electrical system can significantly impact the effectiveness and safety of insulation installation. The survey will check for:
Deterioration: Signs of wear and tear that could pose risks.
Improper Connections or Splices: Faulty wiring can lead to electrical failures.
Overcurrent Protection: Ensures that your system can handle the electrical load.
2. Tamperproof Protection
If you plan to install tamperproof devices to safeguard your wiring, be aware that this may require adjustments to your electrical usage methods. This is to prevent nuisance tripping of fuses, which can lead to disruptions and safety concerns.
3. Certification of Condition
Based on the survey, the contractor will certify whether your existing wiring is in good condition or requires upgrades. They will specify if any work has been done to bring the wiring up to acceptable standards, such as:
Installing tamperproof overcurrent protection
Updating the service panel with breakers
Repairing faulty connections
4. Approval for Insulation Installation
Once the survey is completed and any necessary repairs are made, the areas eligible for insulation installation will be identified. This can include ceilings, floors, or walls, ensuring that your home meets safety standards before insulation work begins.
5. Filing with Local Authorities
A copy of the certification will be submitted to the local authority having jurisdiction over your area, further solidifying compliance with the relevant codes.
Conclusion
Undergoing an electrical survey before insulation may seem like an additional hurdle, but it is a vital step in safeguarding your home. By ensuring that your electrical system is up to code, you not only protect your investment but also enhance the safety and efficiency of your living environment.
If you're preparing for insulation, make sure to schedule your electrical survey and work closely with your contractor to address any issues. Your home—and your peace of mind—will thank you!