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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.
The RSSE Rebate: Free or Low-Cost Solar + Battery for Eligible PG&E Homeowners
California just made going solar and adding battery backup more affordable than ever for low-income households in PG&E territory. If you qualify, you could receive over $30,000 in rebates through the Residential Solar Storage Equity (RSSE) program — a game-changing incentive that covers solar AND battery storage.
🔋 What Is RSSE?
The RSSE rebate is part of California’s Self-Generation Incentive Program (SGIP). It's designed to make solar and battery backup accessible to households that need it most — especially those in disadvantaged communities or who struggle with power outages during wildfire season.
💰 How Much Can You Get?
Eligible homeowners may receive:
$3,100 per kilowatt (kW) of solar panels
$1,100 per kilowatt-hour (kWh) of battery storage
👉 For example, a 5 kW solar system + a 13.5 kWh battery like the Tesla Powerwall could qualify for:
$15,500 in solar rebates
$14,850 in battery rebates
= $30,350 total!
✅ Who Qualifies?
To be eligible, you must:
Own and live in a single-family home within PG&E territory
Have a household income at or below 80% of the Area Median Income (AMI)
OR be enrolled in programs like:CARE (California Alternate Rates for Energy)
FERA (Family Electric Rate Assistance)
ESA (Energy Savings Assistance)
SASH or DAC-SASH (low-income solar programs)
These programs are in place to support Californians who need resilient, affordable energy — especially as climate-driven outages and energy costs rise.
Promotional graphic by Ally Electric and Solar Inc. showing a home with rooftop solar panels and a Tesla battery, highlighting over $30,000 in rebates through California’s Residential Solar Storage Equity (RSSE) program for eligible low-income PG&E customers
| Household Size | Contra Costa County | Alameda County | Marin County | Santa Clara County |
|---|---|---|---|---|
| 1 | $84,600 | $84,600 | $108,300 | $102,300 |
| 2 | $96,650 | $96,650 | $123,800 | $116,900 |
| 3 | $108,750 | $108,750 | $139,250 | $131,500 |
| 4 | $120,800 | $120,800 | $154,700 | $146,100 |
| 5 | $130,500 | $130,500 | $167,100 | $157,800 |
| 6 | $140,150 | $140,150 | $179,500 | $169,500 |
| 7 | $149,800 | $149,800 | $191,850 | $181,200 |
| 8 | $159,500 | $159,500 | $204,250 | $192,900 |
Call us at (510) 559-7700 or email us at nsaglam@allyelectricandsolar.com
Fill out the form to inquire further.
🔋 New SGIP Battery Sizing Rules for Standalone Storage: What California Homeowners Need to Know in 2025
California’s Self-Generation Incentive Program (SGIP) continues to be one of the best ways to reduce the cost of installing a home battery. But if you're planning to apply for a rebate in 2025, it’s crucial to understand the new sizing rules introduced by the California Public Utilities Commission (CPUC) under Resolution E-5360.
These changes took effect on December 19, 2024, and they significantly impact how large your battery system can be — especially if you're installing standalone storage (a battery not connected to solar panels).
⚖️ What Changed?
Under the new rules:
SGIP now sizes battery systems based on energy (kWh), not power (kW)
The old 10 kW sizing threshold has been replaced by a 15 kWh threshold
If your system is larger than 15 kWh, you must justify the size with actual energy usage data
There is now a 30 kWh cap for all systems applying through the residential equity budget
📐 How to Justify Standalone Battery Size
If you're installing a standalone battery and want a system larger than 15 kWh, here's what you need:
You must use:
The average daily energy consumption from 4 PM to 9 PM
during a summer calendar month (June, July, or August)
This specific 4–9 PM window aligns with California’s peak demand period, when the grid is most stressed and energy is most expensive. SGIP wants to ensure batteries are used during these hours.
🧠 Example:
Let’s say you're applying in July 2025 and you provide usage data from June 2025.
Your utility data shows that during June, your household used an average of 15.6 kWh per day between 4–9 PM
Based on this, you’re eligible to install a battery up to 15.6 kWh in capacity
If you wanted to install two Tesla Powerwalls (which total 27 kWh), you’d need to prove your average usage during that time window was at least 27 kWh/day
⚠️ If you don’t have enough usage to justify the size, SGIP will not approve your rebate for the full system.
🚫 Residential Cap: 30 kWh Max
Even if your data supports a larger system, SGIP limits residential equity projects to a maximum of 30 kWh.
✅ When No Justification is Needed
If your standalone battery system is 15 kWh or less, you don’t need to submit any usage data at all. This makes one Tesla Powerwall (13.5 kWh) an easy choice for many homeowners who want to skip the paperwork.
🧾 What You’ll Need to Apply
Interval usage data from your utility (typically Green Button format)
A simple calculation of your average daily 4–9 PM energy use during a summer month
A sizing worksheet or justification form (varies by program administrator)
💡 Should You Pair Storage With Solar?
If you're having trouble justifying a larger standalone battery, you might consider pairing it with solar. Paired systems follow different rules — sizing is based on excess solar production, not your load. That can sometimes allow for larger batteries (we'll cover this in a separate post).
🏡 Bottom Line
If you're planning to install a standalone battery system in California and apply for the SGIP rebate, make sure you:
Understand your 4–9 PM summer usage
Stay below the 30 kWh cap
Use June, July, or August data to justify your system if it’s over 15 kWh
Have questions about your usage data or whether your home qualifies for SGIP? We can help you analyze your numbers and design a right-sized system that qualifies for incentives.
Need help with your SGIP application or battery sizing? Reach out to our team — we’re here to make the process simple. CALL US AT 510-559-7700 or email nsaglam@allyelectricandsolar.com
Revolutionizing Home Energy with FranklinWH's Generator Module and V2L Technology
In today's world, ensuring reliable home energy is more crucial than ever. At Ally Electric and Solar, we are dedicated to offering our customers the most innovative and robust energy storage solutions. That's why we're incredibly excited to highlight FranklinWH and their cutting-edge technologies designed to enhance home energy resilience.
FranklinWH is leading the charge in home energy innovation, particularly with their Generator Module and Vehicle-to-Load (V2L) technology. These features are not just add-ons—they represent a fundamental shift in how we think about home energy security. By allowing multiple energy sources to integrate seamlessly into the FranklinWH system, homeowners gain unprecedented flexibility and reliability, especially during power outages.
What Makes FranklinWH Stand Out?
FranklinWH distinguishes itself by focusing on multi-source energy integration. Here's how:
Generator Module: This module enables homeowners to integrate fuel-powered generators and even electric vehicles (EVs) directly into their home energy system. This ensures uninterrupted power, as you can seamlessly switch between grid power, battery storage, and generator power.
Vehicle-to-Load (V2L) Technology: With V2L, your electric vehicle transforms into a mobile power source. During an outage, your EV can provide backup power to your home, effectively extending your energy reserves.
These technologies work together to create a highly resilient energy ecosystem. Instead of relying solely on the grid or a single backup source, FranklinWH's system supports a diversified approach, enhancing reliability and efficiency.
Call us to find out more:
How the Generator Module allows homeowners to integrate fuel-powered generators and EVs for uninterrupted power.
The benefits of V2L technology, enabling EVs to serve as a backup power source during outages.
How FranklinWH’s system supports multi-source energy integration for enhanced reliability and efficiency.
At Ally Electric and Solar, we are excited to partner with FranklinWH to bring these innovative energy storage solutions to your home. Whether you're looking to enhance your energy independence or ensure reliable backup power, FranklinWH's technology offers the future of home energy resilience.
Stay connected with us for more updates on FranklinWH and how we can help you power your home's future!