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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.
Tesla vs. Enphase vs. FranklinWH
Tesla vs. Enphase vs. FranklinWH: Which Solar Battery is Right for Your Home?
If you’re considering solar + battery storage for your home, you’ve probably heard of Tesla Powerwall, Enphase IQ Battery, and FranklinWH aPower. All three are leading solutions in the solar energy market — but they are very different in performance, flexibility, and value.
At Ally Electric and Solar Inc. (Richmond, CA), we install all three systems and help homeowners choose the best fit. Let’s compare them side by side.
Tesla Powerwall 2
Usable Capacity: 13.5 kWh
Power Output: 5 kW continuous, 7 kW peak
Scalability: Up to 10 units
Warranty: 10 years
Best For: Homeowners who want a proven, all-around battery solution with strong brand recognition.
Tesla is popular because it’s widely known and integrates well with Tesla vehicles. However, it lacks advanced bidirectional charging features in the U.S.
Enphase IQ Battery
Usable Capacity: 3.36 kWh (modular)
Power Output: 1.28 kW (per unit)
Scalability: Highly modular (add as many as needed)
Warranty: 10 years
Best For: Homes that want smaller, scalable batteries — ideal for gradually adding storage over time.
Enphase is great for flexibility and small-to-medium homes, but power output per unit is lower compared to Tesla and FranklinWH.
FranklinWH aPower + aGate
Usable Capacity: 13.6 kWh
Power Output: 5 kW continuous, 10 kW peak
Scalability: Expandable with multiple units
Warranty: 12 years (industry leading)
Best For: High-demand homes, EV owners, and those seeking bidirectional charging.
FranklinWH stands out for bidirectional charging technology (Vehicle-to-Home ready), smart load management, and one of the strongest power outputs in the industry.
Quick Comparison Matrix
Feature Tesla Powerwall 2 Enphase IQ Battery FranklinWH aPower
Usable Capacity 13.5 kWh 3.36 kWh (modular) 3.6 kWh
Power Output 5 kW cont. / 7 kW peak 1.28 kW (per unit) 5 kW cont. / 10 kW peak
Scalability Up to 10 units Highly modular Expandable
Bidirectional Charging Limited in U.S. Not natively Yes (V2H-ready)
Warranty 10 years 10 years 12 years
Best Use Brand trust, all-around Small homes, flexible growth High-demand + EV-ready homes
Which One is Right for You?
Choose Tesla Powerwall if you want a reliable, well-known product with solid all-around performance.
Choose Enphase IQ if you want a modular, scalable system for gradual upgrades.
Choose FranklinWH if you want the highest performance, EV charging support, and future-ready technology.
How Ally Electric and Solar Inc. Can Help
We know that every Bay Area home has different needs. That’s why at Ally Electric and Solar Inc. (Richmond, CA), we:
Provide free assessments of your energy use.
Recommend the best battery system (Tesla, Enphase, FranklinWH).
Handle main service panel upgrades to support higher loads.
Offer professional installation + long-term support.
Whether you need energy security, lower utility bills, or EV charging integration, we’ve got you covered.
Bidirectional Charging: Tesla vs. Enphase vs. FranklinWH — Which Battery is Best for Your Home?
The future of home energy isn’t just about storing solar power — it’s about using it in smarter ways. Bidirectional charging technology allows your solar battery not only to store energy but also to send power back to your home, your electric vehicle (EV), or even the grid.
At Ally Electric and Solar Inc. in Richmond, CA, we help homeowners choose the right system for true energy independence. Today, we’re comparing three leading solutions: Tesla Powerwall, Enphase IQ Battery, and FranklinWH aPower — with a special emphasis on their bidirectional charging capabilities.
What is Bidirectional Charging?
Traditional backup batteries are “one-way” — they store energy from solar panels and release it later.
Bidirectional charging, on the other hand, enables:
Vehicle-to-Home (V2H): Power your home directly from your EV battery.
Vehicle-to-Grid (V2G): Sell stored energy back to the grid during peak demand.
Home-to-Vehicle (H2V): Efficiently charge your EV using your home’s solar + battery system.
This creates a flexible energy ecosystem where your solar panels, backup battery, and EV work together.
Should I Get Bidirectional Charging Technology?
If you own an EV or plan to buy one soon, the answer is yes. Here’s why:
Resiliency: Your EV can act as a giant backup battery for your home, providing power during an outage.
Savings: Sell excess power back to the grid during peak hours (where utility programs allow).
Flexibility: Run your most important appliances during a blackout, even if your solar panels aren’t producing.
Future-Proofing: As California moves toward clean energy goals, bidirectional-ready homes will be more valuable.
For many Bay Area homeowners, bidirectional charging is quickly becoming a smart investment, not just a luxury.
Key Advantages of the FranklinWH System
While Tesla Powerwall and Enphase IQ are strong backup solutions, the FranklinWH system is a leader in bidirectional charging technology.
Its key advantages are:
10 kW peak output for reliable EV fast charging and running large appliances.
Seamless integration with various EV chargers.
Smart load management via the FranklinWH aGate, allowing you to prioritize power to critical circuits.
In short, the FranklinWH system doesn’t just store power — it gives you control, flexibility, and future readiness for the EV-driven home.
How Ally Electric and Solar Inc. Can Help
Bidirectional charging requires more than just a battery. You need a properly configured system that integrates your solar panels, backup battery, main service panel, and EV charger.
At Ally Electric and Solar Inc. (Richmond, CA), we provide:
Energy usage assessments to recommend the right solution.
Panel upgrades (100A → 200A) for safe integration of solar, batteries, and EV chargers.
Installations of Tesla, Enphase, and FranklinWH systems, tailored to your home.
Ongoing maintenance and support, so you’re never left in the dark.
Our mission is to help you take full advantage of bidirectional charging — powering your life today while preparing for the energy needs of tomorrow.
California Solar Spotlight: Navigating the End of the Tax Credit and New Incentives
The solar landscape in California is changing fast. A new federal law signed on July 4 2025 dramatically rewrote clean‑energy tax incentives and has sparked renewed interest in state and local programs. If you’re considering rooftop solar or battery storage for your home, these are the hot topics you should understand—and how My Ally Electric & Solar can help you navigate them.
1 — The federal residential solar tax credit ends after Dec 31 2025
Under the Inflation Reduction Act, homeowners could claim a 30% federal tax credit on the cost of a residential solar system through 2032. But the new One Big Beautiful Bill Act (OBBBA) signed by President Trump in July 2025 repeals the Section 25D Residential Clean Energy Credit after December 31 2025. EnergySage notes that homeowners still installing solar in 2025 can claim the full 30% credit, but there is no phase‑down period—the value falls to 0% on January 1 2026.
What this means:
• Act quickly. Systems installed and operational by December 31 2025 qualify for the 30% credit. If you sign a contract later in the year, supply‑chain delays could jeopardize your eligibility.
• Batteries count. The tax credit also applies to energy‑storage systems installed with solar. My Ally Electric & Solar can design solar‑plus‑storage packages to maximize your incentive before the credit disappears.
2 — Foreign‑entity restrictions may affect equipment choices
The OBBBA also contains Foreign Entity of Concern (FEOC) restrictions. Starting Jan 1 2026, projects using components from certain prohibited foreign entities (notably many Chinese manufacturers) could lose access to credits. While this primarily applies to utility‑scale projects, it underscores the importance of choosing equipment from reputable, domestic‑friendly suppliers. Our team tracks supply‑chain compliance to ensure your system qualifies for available incentives.
3 — State incentives are filling part of the gap
The California Public Utilities Commission’s Self‑Generation Incentive Program (SGIP) launched a Residential Solar and Storage Equity budget on June 2 2025. The program targets low‑income households and offers $3,100 per kW for solar and $1,100 per kWh for storage. More than $280 million in funding is available. These incentives can dramatically reduce upfront costs, especially when coupled with the federal credit before it expires. My Ally Electric & Solar can help determine your eligibility and handle SGIP paperwork.
4 — Net Billing Tariff (NEM 3.0) lowers export compensation
Since April 15 2023, new solar customers in PG&E, SCE and SDG&E territories are enrolled under the Net Billing Tariff (NBT), sometimes called NEM 3.0. Under NBT, exported solar energy is credited at a rate reflecting avoided cost instead of the retail rate, reducing bill savings compared with the earlier NEM 2.0 program. The CPUC notes that customers who interconnect before the end of 2027 receive a small export‑compensation adder for nine years. Homeowners must also switch to special time‑of‑use rates.
Key points:
• Export credits: NBT pays lower rates for excess solar energy, often below retail – encourages self‑consumption and storage.
• Adder: PG&E/SCE customers who interconnect before 2027 get bonus credits for nine years – incentivizes early adoption.
• Battery advantage: Storing energy allows homeowners to use or export it during high‑value hours – maximizes savings under NBT.
My Ally Electric & Solar designs solar‑plus‑battery systems that take advantage of the export adder and reduce reliance on the grid, helping you retain more value under NEM 3.0.
5 — Legal battles over net‑metering cuts
On August 7 2025, the California Supreme Court sided with environmental groups challenging the state’s decision to cut net‑metering payments by about 75%. The justices directed the appeals court to revisit its ruling that had upheld the reduction. They did not overturn the cuts but said the lower court had to consider whether the decision omitted key factors.
Why it matters:
• The court’s decision keeps NEM 3.0 in place for now, but regulators must justify their changes, leaving open the possibility of improved compensation in the future.
• The initial cuts led to an 82% drop in requests for rooftop solar connections and an expected loss of 17,000 jobs. Any reversal could revive demand.
6 — Local permitting and building codes
California’s building code requires solar on most new homes. As electrification policies expand and natural‑gas bans spread across Bay Area cities, new homeowners will need integrated solar, storage and EV charging. My Ally Electric & Solar stays on top of evolving local codes in Walnut Creek and surrounding communities.
7 — How My Ally Electric & Solar can help
As federal incentives sunset and state programs evolve, planning your solar project has never been more complex—or more urgent. Our locally owned company offers:
• Customized solar‑plus‑battery systems that qualify for remaining tax credits and SGIP incentives.
• Compliance with supply‑chain rules to avoid foreign‑entity restrictions.
• Time‑of‑use and rate‑analysis services to optimize savings under NEM 3.0.
• Monitoring of legal developments—including court challenges to net‑metering cuts—so you understand how policy changes affect your investment.
Take action now
With the 30% federal tax credit ending on Dec 31 2025 and state incentives on the table, now is the time to go solar. Contact My Ally Electric & Solar today to schedule a consultation. We’ll help you lock in every available incentive and future‑proof your home’s energy system.