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Franklin Home Power battery system installed in a residential garage, showing clean energy storage setup with connected electrical panels.

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.

  1. 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).

  2. 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?

  1. 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.

  2. 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.

  3. 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.

  4. 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:

  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.


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How to Download PG&E Green Button Data: A Step-by-Step Guide


Are you interested in tracking your energy usage to optimize your solar installation or just get a better understanding of your electricity consumption? PG&E (Pacific Gas and Electric) provides a great tool called **Green Button** that allows you to download your detailed electricity usage data.

Here’s a simple guide to help you download your PG&E Green Button data and get started on tracking your energy usage.

What is PG&E Green Button Data?

PG&E’s Green Button program gives you access to your detailed electricity usage data in a secure and user-friendly format. This data can help you identify patterns, determine your peak usage, and even optimize your solar system to meet your energy needs.

Steps to Download Your PG&E Green Button Data:

1. Log in to Your PG&E Account

- Visit the PG&E website: [https://www.pge.com](https://www.pge.com).

- Click on the “Log In” button in the top right corner of the homepage.

- Enter your account information (username and password) and click “Sign In.”

2. Navigate to the Green Button Data Page

- Once logged in, go to the "My Energy"section of your account.

- From the menu, select “Energy Usage” or "Usage Data" (this may vary based on the version of the site).

- Look for an option to download your data using the Green Button. The button might be labeled as “Green Button Download” or “Download Usage Data.”

3. Choose Your Data Format

- PG&E allows you to download your usage data in two formats:

- CSV (Comma Separated Values) format, which is compatible with Excel or other spreadsheet software.

- XML (eXtensible Markup Language) format, which is useful for developers or for more advanced analysis.

- Choose the format that works best for you.

4. Select the Time Period

- You’ll be prompted to select the time range for your data download. You can usually choose from options like the last 12 months, last 30 days, or a custom date range.

- For solar purposes, downloading 12 months of data is usually ideal, as it gives a good snapshot of your annual usage patterns.

5. Download the Data

- After selecting your desired format and time period, click **“Download”**. Your data will begin to download to your computer.

6. Review the Data

- Once the download is complete, open the CSV and XML file using your preferred software (Excel, Google Sheets, etc.).

- The file will contain detailed information on your energy usage, including daily or hourly consumption in kilowatt-hours (kWh).

7. Use Your Data for Solar System Design

- This data can now be shared with your solar installer to help design a solar system that matches your exact energy usage. It can also be used to analyze your energy habits and look for areas to save.

Why is Green Button Data Important for Solar?

When you're considering going solar, your energy usage data is critical. The more accurate your data, the better your solar system can be designed to meet your needs. The Green Button data will help your solar installer assess:

- How much energy you use on a daily and monthly basis.

- When your peak usage times are (i.e., when you're using the most energy, which helps determine the size of your solar system).

- How much energy you’ll need to offset with solar panels.

Downloading your PG&E Green Button data is a simple and powerful way to take control of your energy usage. Whether you’re preparing for a solar installation or just want to track your consumption, having access to this data puts you in the driver’s seat of your energy decisions.

By following these easy steps, you’ll be ready to dive deeper into your energy habits and make informed choices for a more sustainable future.

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California Utilities' New Fixed Charges: What It Means for Solar Customers and Your Energy Bill

PG&E Bill


In a recent decision that’s been met with mixed reactions, California’s major investor-owned utilities (IOUs) – Pacific Gas & Electric (PG&E), Southern California Edison (SCE), and San Diego Gas & Electric (SDG&E) – have announced a significant change to their pricing structure, with a new monthly fixed charge that will impact customers across the state. The move comes as part of the California Public Utilities Commission's (CPUC) efforts to balance the growing costs of grid maintenance and energy infrastructure. Let’s take a deeper dive into what this means for consumers and solar customers specifically.

The New Fixed Charge Structure

As of Q4 2025 for SCE and SDG&E, and Q1 2026 for PG&E, customers will see a new monthly charge on their energy bills, which will apply to all customers of the three large IOUs. Here’s a breakdown of the changes:

- $24.15 per month for all three large IOUs

This will be the standard fixed charge that applies to all residential customers, regardless of how much energy they consume.

- $6.00 per month for CARE customers

Low-income customers enrolled in California’s CARE (California Alternate Rates for Energy) program will pay a reduced rate for this new fixed charge.

- $12.08 per month for FERA customers

Customers enrolled in the FERA (Family Electric Rate Assistance) program, which serves middle-income households, will also receive a discounted rate.

While this monthly fixed charge may seem like a small increase at first glance, it can add up significantly over time, especially for customers who are currently benefiting from a more flexible pricing structure based on actual energy usage.

Impact on Solar Customers

For solar customers, this decision raises important considerations. Currently, many solar customers benefit from net metering, where they receive credits for the excess solar energy they produce and send back to the grid. This structure has been a key driver for people adopting solar energy, as it allows them to offset their electricity bills and make their investment in solar more financially viable.

However, with the new fixed charge, solar customers will likely see a shift in the way they are billed. The fixed charge means that regardless of how much energy they use or produce, they will still be required to pay this flat fee each month, which could make solar customers' bills less predictable. In essence, while you might still be saving money with your solar installation, your monthly utility charges won’t drop to zero as easily as before – even if you produce more energy than you consume.

Lower kWh Rates to Offset Increased Fixed Charges

In an attempt to balance the increased revenue from the new fixed charge, the utilities have agreed to lower their per-kWh rates. This means that the cost of electricity usage (based on the number of kilowatt-hours consumed) will decrease slightly:

- PG&E: 4.7 cents per kWh

- SCE: 4.6 cents per kWh

- SDG&E: 6.8 cents per kWh

For solar customers, this might offer a bit of relief on the energy side of the bill, as the cost per kWh will be reduced. However, the benefit might be overshadowed by the new fixed monthly charge, especially for those who rely on high energy usage and are accustomed to more variable costs.

What Does This Mean for the Future of Solar?

The introduction of a fixed charge is likely to prompt more discussions around how solar customers are compensated for their energy contributions to the grid. While the lower per-kWh rates may soften the blow, the increased fixed charge could discourage new solar installations for customers who were previously on the fence about making the jump. The unpredictability of utility bills, coupled with the loss of some savings from net metering, may make it harder for some people to justify the initial investment in solar.

However, for those who are already solar customers, this new fee could further highlight the importance of energy storage. With the ability to store excess energy in batteries like the Tesla Powerwall or other similar products, solar customers can reduce their dependence on the grid and avoid some of the impact of the new fixed charges. By maximizing self-consumption of solar energy, customers can reduce their grid reliance, keeping their utility bills lower despite the fixed charge.

While the rate adjustments by PG&E, SCE, and SDG&E are certainly a step toward addressing infrastructure needs and sustainability goals, they also underscore the need for more comprehensive solutions to incentivize clean energy adoption. With the fixed charge becoming the new norm, California residents and solar customers may need to rethink how they use and store energy to ensure they still benefit from their solar investments.

We recommend that solar customers consider evaluating their energy usage patterns and invest in home energy storage solutions if they haven't already. By doing so, you can continue to make the most of your solar system, even as the utility pricing structure evolves.

The new fixed charge proposed by PG&E, SCE, and SDG&E marks a significant shift in California’s energy landscape, and it’s a change that will impact all consumers, including those who have made the switch to solar. While lower per-kWh rates may provide some relief, the new fixed charge will likely make solar savings less predictable for many. As we head into 2025 and 2026, it’s more important than ever for solar customers to evaluate their energy needs, consider energy storage options, and stay informed about how these changes might affect their long-term energy costs.

If you're thinking about going solar or need to adjust your current system, now is a great time to talk to a professional who can help you navigate the upcoming changes and maximize the savings from your solar investment.



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How to Build an ADU and Keep Your NEM 2.0 Solar Benefits: Our Recommendation

The rise in popularity of Accessory Dwelling Units (ADUs) in California is a trend that shows no signs of slowing down. Whether you're building an ADU for additional living space, a rental unit, or to house a family member, it’s important to understand how adding this new structure might impact your solar energy system, especially if you're currently taking advantage of **Net Energy Metering 2.0 (NEM 2.0).

NEM 2.0 is a key benefit for homeowners with solar systems, allowing them to earn credits for excess energy they send back to the grid. But when it comes to building an ADU, **adding a new unit with its own electrical meter could impact your solar savings and energy costs**. In this post, we’ll explore how NEM 2.0 works, why your ADU could affect it, and what we recommend to make sure you don’t lose your NEM 2.0 status

Understanding NEM 2.0: What It Means for Homeowners**

Net Energy Metering 2.0 (NEM 2.0) is a program offered by California utilities that allows solar homeowners to receive credit for the excess electricity their solar panels generate and send back to the grid.

-How it works: During the day, when your solar system generates more energy than you use, the excess power flows back into the grid, and you earn credits. At night, when your panels aren’t generating energy, you draw power from the grid, and those credits are used to offset your energy consumption.

- Why it’s valuable: Under NEM 2.0, you receive credits at the full retail rate for the energy your solar panels produce. This helps lower your electric bills, and over time, can significantly reduce the overall cost of your solar system.

However, if you're considering building an ADU, there are a few things to keep in mind regarding your solar energy system.

The Challenge: ADUs and Their Impact on NEM 2.0

Adding an ADU to your property means you’re adding another living space that will require its own energy usage. If your ADU is connected to the same electrical meter as your primary home, it will increase your overall energy demand. But here's the catch: If the ADU uses more power than your solar system is generating, you could lose some of the benefits of NEM 2.0.

When you add a new structure to your property, like an ADU, the utility companies may view the ADU’s energy consumption as part of your home’s total energy usage. This can create several complications:

1. Higher Energy Usage: The ADU’s additional energy consumption could push your home’s total usage above the amount your solar panels are generating. While you’ll still receive credits for the excess energy you generate, if the ADU uses more power than your panels can produce, you might need to buy more electricity from the grid.

2. Potential Impact on NEM 2.0: In some cases, if the ADU is not separately metered and is drawing power from the same meter as your primary residence, the utility may recalculate how your system’s credits and charges are applied. This could cause you to lose some of your NEM 2.0 benefits, especially if your total energy usage increases beyond what your solar system can offset.

Our Recommendation: Put the ADU on a Separate Meter

To ensure you don’t lose your NEM 2.0 status when building an ADU, we recommend installing a separate meter for the ADU. Here’s why:

- Separate Billing: If your ADU is on a separate meter, its energy consumption will be tracked separately from your primary home. This means the electricity used by your ADU won't count against the solar energy credits generated by your existing system.

- Retain Your NEM 2.0 Benefits: By keeping the ADU on a separate meter, your primary home’s energy consumption—and the amount of energy it sends back to the grid—will remain independent. You can continue to earn full credits for the energy your solar panels produce, without the ADU’s energy usage affecting your NEM 2.0 benefits.

- Flexibility: If the ADU is using a lot of energy (for example, if it has high-energy appliances, air conditioning, or electric heating), a separate meter allows you to manage each unit’s power use independently. This can help you avoid unexpected bills or disruptions to your solar energy credit balance.

Additional Benefits of a Separate Meter for Your ADU

Besides protecting your NEM 2.0 status, there are other financial and logistical advantages to putting the ADU on a separate meter:

- Clearer Energy Usage: You’ll have a more accurate picture of how much energy your ADU is using versus your primary home. This can help you assess whether the ADU is using more energy than expected and make adjustments (like adding more solar panels or improving energy efficiency) if needed.

-Future Flexibility: If you decide to rent out the ADU or sell your property, a separate meter can make it easier to track and allocate electricity costs, as well as create a clear distinction between the energy use of the primary home and the ADU.

Tax and Incentive Benefits: Depending on the energy programs available, a separate meter might help you qualify for certain incentives or tax credits related to the energy efficiency of your ADU.

Final Thoughts

Building an ADU is a fantastic way to add value to your home and increase living space, but it’s essential to keep an eye on how it impacts your solar energy system and your NEM 2.0 benefits. By installing a separate meter for the ADU, you can avoid complications with your solar credits and ensure that you continue to reap the rewards of your solar investment.

At Rooftop Solar, we specialize in helping homeowners maximize the benefits of their solar systems, whether they’re building an ADU or just looking to optimize their current setup. If you’re planning to build an ADU and want to ensure your solar system is set up for success, feel free to contact us. We’ll guide you through the process and help you protect your NEM 2.0 status while you add that extra space to your home.


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