NSW Battery Rebate
California’s Net Billing Tariff (NBT), also referred to as NEM 3.0, is an updated policy for compensating solar system owners who export energy back to the grid. Implemented on April 15, 2023, it replaced the previous NEM 2.0 policy and applies to all new solar interconnections in these territories:
- Pacific Gas & Electric (PG&E)
- Southern California Edison (SCE)
- San Diego Gas & Electric (SDG&E)
NBT Accelerates Shift to Solar Plus Battery Storage
Under NBT the compensation for exported energy is based on the utility’s avoided costs, which are often significantly lower than retail rates at which the previous NEM programs mostly use. This makes onsite energy storage increasingly valuable.
By pairing battery storage with a solar system, homeowners can strategically program their batteries to supply the home during peak hours, when electricity prices are high, to avoid drawing energy from the grid. This helps maximize their savings rather than lose value by avoiding the downside of exporting cheap and buying expensive.
The table below illustrates the rapid growth of battery and solar + battery from August 2023 to July 2024, increasing from 15% to 58%. The share of solar-only systems witnessed a complete opposite trend.
Data source: CA Resi NBT Installation
Impacts of the NBT on Energy Savings
The transition to NBT makes home energy management and storage systems more important than ever in ramping up energy savings, primarily in two ways:
- Use more self-generated solar during peak hours: integrating a battery with a solar system maximizes the utilization of photovoltaic power by storing surplus energy and allows homeowners to rely more on their self-generated electricity rather than the grid, especially during peak evening hours.
- Optimize energy exports for greater savings: a home battery, such as the FranklinWH aPower 2, stores solar energy when export rates are low and enables the system owner to strategically sell it back to the grid when rates peak. The FranklinWH App automates this process by following a preset schedule, ensuring stored energy is exported at the most financially beneficial times.
First-Year Savings of Solar Only and Solar + FranklinWH aPower
The table below compares the first-year savings of a solar-only system versus a solar + FranklinWH aPower X of a median SCE customer. A solar-only system reduces electricity costs by $720, which is 16.8% off the original bill. In contrast, a solar + storage system achieves $1,649 in savings, reducing the original bill by 138%1, effectively offsetting electricity costs with surplus savings.
Long-Term Savings
While solar plus storage entails higher upfront costs than solar only, pairing solar with a battery storage can generate much more lucrative long-term benefits than solar alone. The following diagrams show the stark contrast of net present values (NPV)2 between solar only and solar + FranklinWH aPower for a median SCE customer over a 12-year warranty period.
The solar + battery system generates positive returns within only six years and accumulates a financial benefit of $42,869 at year 12, whereas a solar-only system still remains in negative returns at the end of the time frame. 
Optimal Times to Get the Most Lucrative NBT Benefits
Under NBT, export rates fluctuate throughout the day and across different seasons. When the policy went into effect on April 15, 2023, the average export rate dropped by 75%, decreasing from $ 0.30 per kWh to $0.08 per kWh (solar.com).
However, during peak export hours, such as summer evenings in August and September, rates can be significantly higher. For instance, in September 2024, Southern California Edison (SCE) offers exceptionally high export rates between 6 PM and 8 PM on weekdays, ranging from $3.36/kWh to $3.78/kWh. NBT customers who export energy during these peak periods can earn substantial credits.
Table 1 - SCE: NBT24-Calendar 2024 data of Export Compensation Rate
How Will NBT Affect Customers of NEM 1.0/2.0?
Customers enrolled in NEM 1.0 or NEM 2.0 will not be affected by NBT and will continue receiving service under their existing net metering agreements for 20 years from their original interconnection date.
Additionally, adding a battery to an existing solar system will not change their current NEM status, provided the modification does not increase the system’s size by more than 10% or 1 kW and the battery does not charge from grid if your system is under NEM 1.0. However, policy changes could occur in the future, so customers should stay informed about potential updates that may impact their net metering benefits.
FranklinWH System Settings for NBT
FranklinWH System provides a user-friendly app that allows homeowners to get the most profits by exporting energy to the grid under the NBT.
It can automatically retrieve and apply user’s electricity rate plan according to your system ID, including both the time- of-use (TOU) retail rate and the separate export rate.
The app will automate the exporting process during the peak export rate periods, such as 6 to 8 PM in Aug. and Sept., maximizing credit earnings.
For more comprehensive instructions, please check the FranklinWH App Setting Guide for NBT Homeowners.
Advantages of FranklinWH System for NBT
FranklinWH offers an AC-coupled home energy management and storage solution, compatible with all solar inverter brands, enabling much easier and more flexible setup for both new installations and existing systems. Complemented with unrivaled battery warranty up to 15 years, quick-response and reliable after-sales services, and an intelligent app, it is always the ideal choice for homeowners to reap the most NBT benefits.
1The estimation assumes: (i) a median FranklinWH customer with a 9 kW solar installation and two aPower X units (27.2 kWh); (ii) annual energy consumption of 9000 kWh; (iii) 25% daytime and 75% nighttime energy use. FranklinWH uses internal software to simulate the energy usage pattern and acquire the estimated savings. Actual savings will depend on factors such as your energy system's capacity, your geographic location, and your household's specific energy consumption patterns.
2The estimate assumes the same conditions as the estimation for first-year bill savings, and factors in (i) initial upfront cost; (ii) annual savings under the utility rate of SCE with a 3% annual utility inflation; (iii) a 5% discount rate. The estimation is based on the simulation of real-world operating conditions using FranklinWH’s internal software and is for reference only. For actual results, please refer to the observed data of your on-site equipment.
