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Pairing Solar and Battery Under NEM 2.0?

Battery & NEM 2.0 Pairing

A major topic in the NEM 3.0 discussion is a push for pairing solar with battery storage.

Take a look at the import/export price graph below, you will notice that export prices skyrocket from 7-8 pm. That’s because energy demand is peaking while solar generation is winding down for the night — which is a problem throughout the state.

Example day of Electricity Import & Export Prices chart

Upon reviewing, the NEM 3.0 proposal indicate that the return on investment for solar and battery storage will be roughly equal to the return on investment of solar alone. With that in mind, pairing solar with a battery becomes more compelling because you get the same return on investment plus the additional benefits of having battery backup for power outages.

In addition to the 30% federal tax credit, there will be an additional $900 million in funding available for the Self Generation Incentive Program (SGIP) available on July 1, 2023. SGIP provides battery storage rebates for SCE, PG&E, SDG&E and SoCalGas customers.

Current Nem 2.0 Customers Can Add Battery Storage Later

Another important nugget of the NEM 3.0 decision is that NEM 2.0 can add battery storage in the future and retain their NEM 2.0 status.

There are two common scenarios where this comes into play:

  1. If you currently have a solar system in California, you won’t be transitioned into NEM 3.0 if you add battery storage after April 13, 2023
  2. If you go solar under NEM 2.0 before the April 13, 2023 deadline, adding battery storage later will not change your NEM 2.0 status

There are several advantages to pairing solar and battery in California, so being able to add battery and remain in NEM 2.0 is a big win for Californians.

Want to Add a Battery?

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