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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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The Importance of a Sound Roof Before Installing Solar Panels in the Bay Area


When it comes to installing solar panels in the Bay Area—specifically in cities like Berkeley, Oakland, Richmond, El Cerrito, and Piedmont—the condition of your roof is just as important as the solar system itself. Before you make the leap to clean, renewable energy, it’s crucial to ensure your roof is in excellent condition. A solid, well-maintained roof will help ensure the longevity and efficiency of your solar installation, allowing you to get the most out of your investment.


Why Roof Condition Matters for Solar Panel Installations

  1. Roof Stability and Structural Integrity Solar panels require a secure mounting system to stay in place for decades. If your roof is weakened or damaged, it may not be able to support the weight of the solar panels, which could lead to potential damage to both your roof and your solar system. In the Bay Area, where weather conditions can vary, a structurally sound roof is essential for long-term solar energy performance.

  2. Roof Age and Lifespan Roofs, like solar panels, have lifespans. Most roofs last between 20-30 years, and solar panels typically last 25-30 years. If your roof is approaching the end of its useful life, installing solar panels could create complications down the road. You don’t want to install panels on a roof that might need to be replaced in just a few years. Replacing your roof before installation will save you the cost and hassle of removing and reinstalling solar panels in the future.

  3. Energy Efficiency and Protection A well-maintained roof helps regulate your home’s energy efficiency. If your roof is old or has damage, it can lead to air leaks, which makes your home less energy-efficient. A new or well-maintained roof, paired with a high-performance solar energy system, will maximize your home’s energy efficiency and help keep heating and cooling costs low.

What to Do Before Installing Solar Panels in the Bay Area

Before moving forward with a solar installation in cities like Berkeley, Oakland, Richmond, El Cerrito, and Piedmont, it’s important to have your roof inspected by a professional. A roofing expert will assess the overall condition of your roof, check for damage or wear, and ensure there are no issues that could affect your solar system’s performance.

Partnering with a Trusted Roofing Company in the Bay Area

If you're unsure about the condition of your roof, we recommend working with a trusted local roofing partner, like Collins Roofing Company. Specializing in roofing services across the Bay Area, their team can inspect, repair, or replace your roof to ensure it’s in top condition for solar panel installation. They are experts in ensuring that your roof is stable and ready for a seamless solar installation.

Protect Your Home and Investment with a Solid Roof

In the Bay Area, having a sound roof is key to ensuring your solar panel system operates efficiently for years. Before moving forward with solar installation, make sure your roof is up to the task. Whether you're in Berkeley, Oakland, Richmond, El Cerrito, or Piedmont, working with a professional roofing company like COLLINS ROOFING, one of the oldest Roofing Company in Oakland ensures your roof is prepared to support your new solar system and protect your investment.

Reach out today for a roof inspection, and take the first step towards a cleaner, more energy-efficient future.

Collins Roofing

3756 Grand Avenue Suite 304
Oakland, CA 94610

(510) 444-2220
email: office.collinsroofing@gmail.com

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Permanent Battery Storage Rebate Find out if you qualify for a $7,500 rebate on a permanent battery storage system

Power outages are a common occurrence in California, especially during extreme weather events. Whether due to wildfires, storms, or public safety power shutoffs, it’s essential for homeowners to have reliable backup power to ensure that critical appliances, equipment, and electronics keep running. To help homeowners safeguard their homes, PG&E is offering a $7,500 rebate on the purchase and installation of permanent battery storage systems.

What is the Permanent Battery Storage Rebate?

The Permanent Battery Storage Rebate from PG&E is designed to encourage homeowners to install a backup battery system for emergency situations. The rebate is available to first-time PG&E battery storage customers who meet the eligibility requirements and agree to install a permanent battery storage system that provides backup power during an outage.

This rebate offers up to $7,500 toward the cost of purchasing and installing a qualified permanent battery storage system. It is available on a first-come, first-served basis, while funding lasts. However, currently, 190,000 PG&E customers are eligible for this program, but only 600 customers will receive funding.

Benefits of Backup Power

By installing a battery storage system, homeowners can ensure their homes are prepared for power outages. Backup power systems provide several critical benefits:

  • Keep the lights on: Power your home during an outage, avoiding disruptions in daily life.

  • Help appliances stay running: Ensure essential appliances such as refrigerators and freezers continue operating.

  • Save perishable food: Keep food safe and fresh by maintaining refrigeration.

  • Power essential equipment: Keep important electronics and medical devices powered during an outage.

Eligibility Requirements

To qualify for the Permanent Battery Storage Rebate, applicants must meet the following criteria:

  • PG&E Residential Customer: You must be a residential electric service customer of PG&E.

  • First-time Battery Storage Customer: This program is specifically for first-time battery storage customers with PG&E.

  • Outage History: You must have experienced five or more Enhanced Powerline Safety Settings outages since January 1, 2023.

  • Qualified Battery: Your battery system must be on PG&E’s Qualified Product List.

  • Permission to Operate: The permanent battery storage system must be installed and have received Permission to Operate from PG&E’s Electric Generation Interconnection (EGI) Department.

  • Time-of-Use Rate Plan: You must be enrolled in a PG&E Time-of-Use rate plan.

  • PG&E Demand Response: You must be enrolled in PG&E’s Demand Response Program or a similar equivalent program as determined by PG&E.

  • Solar Customers: If you have solar panels, you should check with your solar provider to ensure the battery is compatible with your system.

Important Details:

  • Standalone Battery: The battery can be a standalone backup system without requiring an existing solar setup. It’s not mandatory to have solar panels to qualify for the rebate, making this an accessible option for many homeowners who just need reliable backup power.

  • No Income Limit: There are no income restrictions for eligibility, so all PG&E customers who meet the other qualifications can apply for the rebate.

  • Backup Only: This battery storage system can also be used as backup power only. If you're only interested in using the system for backup purposes and don’t want it tied to your solar or grid usage, this option is available. Most likely, any eligibility will align with what SGIP allows—we will follow up with more specific details.

  • Separate Cost Breakdown: You do not need to include the full cost of the installation and materials in your original contract. You can place the material and labor costs on a separate sheet to be submitted for review.

How to Apply

The application process is straightforward, but there are important deadlines to keep in mind:

  1. Eligibility Verification: First, check if you're eligible by entering your address in the Permanent Battery Storage Rebate Address Lookup Tool on PG&E’s website.

    • Address Lookup Tool

  2. Submit Application: Applications must be submitted within 12 months from the purchase date or by December 31, 2025, whichever is sooner. Note that the application cannot be submitted until your battery system has been installed and received Permission to Operate from PG&E.

  3. Rebate Limit: The rebate is one per household, regardless of the system size or quantity installed.

  4. Allow Enough Time: Ensure that you have ample time to purchase, install, interconnect the system, and submit the application.

Dual Participation and Other Considerations

It’s important to note that PG&E’s new battery storage rebate can also be combined with other incentives, such as the Self-Generation Incentive Program (SGIP), although you should check the terms and conditions to ensure eligibility. However, there are some restrictions when combining incentives, so be sure to confirm whether the battery storage system you are purchasing is eligible for both programs.

What Does the Rebate Cover?

The $7,500 rebate is designed to offset the costs of purchasing and installing a permanent battery storage system, which can provide critical backup power during outages. However, it's important to remember that labor costs and other additional system components (like gateways or controllers) are not included in the rebate. Only the battery storage system itself is eligible for the rebate.

Conclusion

PG&E’s Permanent Battery Storage Rebate offers a fantastic opportunity for homeowners to invest in reliable backup power. Not only will this help ensure that your home is prepared for unexpected power outages, but it also provides a substantial rebate to reduce the financial burden of installing a battery storage system. If you meet the eligibility criteria, this program can help you protect your home and ensure peace of mind during outages.

To find out if you qualify, visit PG&E’s website and use the address lookup tool to check your eligibility:

  • Permanent Battery Storage Rebate Eligibility

Have questions or want to find out if you qualify? Feel free to give us a call! (510) 559-7700 or email us at nsaglam@allyelectricandsolar.com. We're here to help guide you through the application process and make sure you get the most out of your rebate. Don’t wait, as funding is limited and this is a first-come, first-served program.

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How Cheap EV Charger Installations Could Affect Your Home Insurance

When it comes to installing an EV charger, opting for cheaper materials or substandard installation can have serious consequences—not only for your safety but also for your home insurance coverage. Here’s how insurance companies typically view cheap or improper installations:

1. Impact of Cheap Materials:

  • Aluminum Wiring: Some cheap installations use aluminum wire instead of copper, which is more prone to corrosion and expansion/contraction. This can lead to loose connections, overheating, and an increased risk of fire hazards. Home insurance companies are particularly cautious about aluminum wiring and may view it as a safety risk that could lead to denied claims if something goes wrong.

  • Substandard Equipment: Using cheaper, uncertified chargers or components without proper safety certifications can lead to malfunctions, fires, or damage. Insurers often require that all electrical installations meet safety standards, and using low-quality equipment might void your coverage.

2. Insurance Coverage and Risk:

  • Risk Assessment: Insurance providers assess the risk of electrical fires and property damage. An improperly installed EV charger using cheap materials increases this risk, which could result in higher premiums or a denied claim if something goes wrong.

  • Non-compliance with Codes: If the installation doesn’t meet local electrical codes or safety regulations, insurers may refuse to cover damages caused by faulty installations. They may also require that the installation be brought up to code before approving any future claims or renewing your policy.

3. Liability Concerns:

  • If an incident occurs due to poor installation, such as a fire caused by overheating or faulty wiring, your insurance company may shift liability onto you for not using a licensed professional or for using materials that don't meet safety standards.

4. How to Ensure Proper Coverage:

  • Hire a Licensed Electrician: Always use a licensed professional for installation to ensure safety and compliance with local codes.

  • Use Certified Equipment: Ensure that the charger and all materials are UL-listed or certified to meet national safety standards.

  • Document the Installation: Keep records of your installation, including invoices, permits, and inspection reports, to provide proof of proper installation in case of a claim.

Cheap or improper EV charger installations can increase your insurance risk and potentially void coverage. Insurers are particularly cautious about aluminum wiring and substandard equipment, and may deny claims or raise premiums if safety standards aren’t met. To protect your home and ensure reliable coverage, invest in quality materials and hire a licensed electrician for your EV charger installation.

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