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Mediterranean Styled Home With Solar Battery Storage NEM 3.0

The Essential Role of Battery Storage in Solar Energy: Navigating California’s NEM 3.0 Changes

Greetings to all the forward-thinking homeowners and business leaders in sunny California! Today, we’re diving deep into a topic that’s buzzing in the world of renewable energy – the pivotal role of battery storage in solar systems, especially in light of the new Net Energy Metering (NEM) 3.0 changes in our state. This shift is more than just a policy update; it’s a game-changer for anyone considering solar energy.

Understanding NEM 3.0 and Its Impact on California Solar Energy

Let’s start with the basics. NEM 3.0, which rolled out on April 14, 2023, has reshaped the solar energy landscape in California. This new policy has significantly reduced the net metering rates for new solar customers – a reduction of about 75%. What does this mean for you? Well, the compensation for the excess solar power you send back to the grid is now calculated based on a myriad of factors, including the time of day, the day of the week, and even the month. This complex pricing structure has effectively doubled the solar payback period, with customers potentially losing around 60% of the savings they could have expected under the previous system over the lifetime of their solar setup.

The Rising Importance of Battery Storage

In this new era, battery storage is not just an optional upgrade; it’s become a crucial component of any solar energy system. Here’s why:

Strategic Energy Management: With battery storage, you can store the excess solar power generated during peak sunlight hours. This stored energy can then be used or sold back to the grid during peak demand times when the rates are highest, ensuring you get the most out of every kilowatt-hour generated.

Optimized Self-Consumption: Storing solar energy allows you to use it when utility rates are high, reducing your reliance on the grid and lowering your energy bills.

Enhanced Return on Investment (ROI): Innovative solutions like those from Enphase Energy are designed to maximize homeowner ROI under NEM 3.0. These systems enable you to self-consume and sell energy at optimal times, all while offering backup power during grid failures.

Tailored Solutions for Diverse Needs

Several companies have stepped up to offer solutions tailored to these new challenges:

Sunrun’s Shift: This innovative storage configuration is designed to maximize self-consumption during peak hours, thereby reducing exports back to the grid when they are least valuable. It’s a smart way to adapt to the changing energy landscape.

SolarEdge’s Home Rate Saver: This solution is a boon for those looking for cost-effective storage. It’s specifically tuned to NEM 3.0 rate structures and can save homeowners up to 38% on system and installation costs.

Sunnova Energy: In a bold move, Sunnova offers a free battery for new customers in California who opt for a solar + storage system lease. This approach is designed to manage the reduction in solar energy value while optimizing solar generation.

Simmitri, Inc.: In Silicon Valley, Simmitri, Inc. has taken bold steps to help businesses and homeowners take full advantage of the changes made to net energy metering. Their solar energy team has customized solar and battery solutions to help new customers take advantage of the energy they create. 

Home Powred By Solar NEM 3.0 California

Stay Focused On Solar Battery Storage

In the wake of NEM 3.0, integrating battery storage with your solar system is more crucial than ever. It’s not just about embracing renewable energy; it’s about ensuring that your investment in solar technology pays off in this new regulatory environment. Whether you’re a homeowner looking to reduce your carbon footprint and energy bills or a business aiming to cut operational costs and boost sustainability, the smart integration of battery storage is key.

A Closer Look At Solar Battery Storage Benefits

Let’s delve a bit deeper into the benefits of incorporating battery storage into your solar energy system:

Maximized Energy Utilization: With battery storage, you’re not just generating clean energy; you’re ensuring that every bit of it is used efficiently. Whether it’s powering your home or business during peak rate times or being sold back to the grid at the most lucrative moments, you’re making the most of your solar investment.

Increased Energy Independence: Battery storage gives you a greater degree of control over your energy usage. You’re less reliant on the grid, which not only provides peace of mind but also guards against fluctuating energy prices and potential outages.

Supporting the Grid: By strategically feeding energy back into the grid during high-demand periods, you’re playing a part in stabilizing the energy network. This is especially crucial during times of peak demand or when the grid is under stress.

Navigating the Financial Landscape

Understanding the financial implications of NEM 3.0 and the role of battery storage can be daunting. Here are some key points to consider:

  • Initial Investment vs. Long-Term Savings: While the upfront cost of adding battery storage to your solar system might be higher, the long-term savings and increased ROI make it a wise financial decision.
  • Incentives and Rebates: Be sure to explore the various incentives and rebates available for solar and battery storage systems. These can significantly offset the initial costs and accelerate the payback period.
  • Customized Solutions: Every home and business is unique, and so are their energy needs. Work with a reputable solar provider who can tailor a system to your specific requirements, ensuring you get the best value for your investment.


As we navigate these changing times in California’s solar energy landscape, the importance of battery storage cannot be overstated. It’s a powerful tool that not only enhances the efficiency and ROI of your solar system but also contributes to a more sustainable and resilient energy future. Embracing this technology is a smart move for any homeowner or business looking to make the most of their solar investment under NEM 3.0.

Frequently Asked Questions

Net Energy Metering 3.0 (NEM 3.0) is the latest solar billing policy for customers of California's major utilities - PG&E, SCE, and SDG&E. Implemented from April 15, 2023, it introduces significant changes to how solar energy production is credited, particularly affecting the financial benefits of solar systems.

NEM 3.0 reduces the compensation (export rates) for excess solar energy fed back into the grid by about 75%. This change means longer payback periods for solar installations and a decrease in overall savings. However, California remains a leading state for solar energy savings, especially when systems are paired with battery storage.

No, NEM 3.0 does not apply retroactively. Solar systems installed and operating under previous NEM policies (1.0 or 2.0) will continue to enjoy their existing benefits for 20 years from their interconnection date.

Yes, pairing solar panels with battery storage is encouraged under NEM 3.0. Homeowners can benefit from additional savings and efficiency, especially during peak energy demand hours. Financial incentives are available through programs like the Self Generation Incentive Program (SGIP).

Despite the reduced export rates, solar energy systems under NEM 3.0 can still offer substantial savings over time. Benefits include reduced carbon emissions, increased property value, and backup power during outages (with battery storage). Refer to: NEM 3.0 in California

NEM 3.0 makes the integration of battery storage with solar panels more financially attractive. This combination helps in managing energy costs effectively, particularly with Time-of-Use rates, where energy prices vary based on demand.