FranklinWH System with TOU and Backup Functions Supports NEM 3.0 in California

Industry insights · Dec 15, 2023


As California continues to lead the way in embracing renewable energy sources and sustainable practices, the need for efficient energy storage solutions has become increasingly apparent. In the context of the evolving Net Energy Metering (NEM) 3.0 regulations, residential energy storage solutions that support both TOU and backup functions will yield the best return on investment.

The FranklinWH whole home energy management system is a robust system with 13.6 kWh of battery storage which can expand to 204 kWh or more. The FranklinWH energy solution is the best residential energy storage solution for NEM 3.0 in terms of economic return.

Optimizing Energy Costs with TOU Functionality

As an electric rating method that will be increasingly adopted by more states, TOU pricing structures incentivize consumers to shift their energy consumption to periods of lower demand, off-peak, hours when electricity rates are lower.

A smart energy storage system enables homeowners to store excess energy during times of low demand and discharge it when electricity costs are at their peak. This not only results in substantial savings on electricity bills but also helps alleviate strain on the grid during peak periods, contributing to a more sustainable and resilient energy infrastructure.

One of the key advantages of the FranklinWH energy management system is its flexibility and intelligence in supporting TOU, an ability to optimize energy costs. Homeowners can use the FranklinWH App to set flexible TOU time frames based on the local grid packages and the FranklinWH system will take care of the rest by charging the battery during off-peak hours and discharging it during peak hours.

Alongside the TOU function, there are Smart Circuits in the FranklinWH system that allow homeowners to remotely control two to three major household loads such as AC, pumps, or freezers. During peak hours, when the electric rate is the highest, homeowners can turn off these loads and use them during off-peak rate hours. Smart Circuits also allow the homeowner the control to turn off high-demand loads during an outage in order to extend power for necessary loads.

Franklin Home Power

Enhancing Energy Resilience with Backup Functionality

California's NEM 3.0 regulations emphasize the importance of energy resilience in the face of grid disruptions. Home energy storage systems with backup functionality are crucial in ensuring that households remain powered even during power outages.

By seamlessly switching to stored energy during a grid outage, these systems provide an uninterrupted power supply, allowing homeowners to maintain essential services such as lighting, refrigeration, and communication devices.

This capability becomes increasingly valuable in regions prone to extreme weather events, grid failures, or emergencies, ensuring that families are not left in the dark when they need power the most. As wildfires become frequent, energy backup storage at home could be necessary in some vulnerable areas in California and elsewhere.

Maximizing Return on Investment with NEM 3.0 Compatibility

The NEM 3.0 regulations aim to strike a balance between compensation for solar energy producers and the need for grid stability. Residential energy storage systems that adhere to these regulations ensure that homeowners can still benefit from compensation structures for excess energy fed back into the grid. This alignment maximizes the return on investment for solar and storage installations, making it economically viable for homeowners to invest in these sustainable technologies.

FranklinWH’s NPV

The FranklinWH energy management system is available for the Investment Tax Credit (ITC), a federal investment tax credit that can provide a tax credit to offset 30% of the purchasing price of home energy storage, and SGIP, a California local government incentive for installing home energy storage that can save approximately 25% of the cost for general markets.

FranklinWH NPV

By applying the ITC tax credit and calculating the net present value of investing in the FranklinWH energy management system under electric rates of three major utility companies in California, PG&E, SDG&E, and SCE, with a 5% discount rate and 3% utility annual inflation, the NPVs are positive with $17108, $25686, and $21908. The respective year of positive return is reached in years 5-7, depending on the utility.

FranklinWH’s cutting-edge whole-home energy solution elegantly manages solar, grid, battery, and even generators, to flexibly dispatch electricity for more cost savings and to provide robust energy backup, increasing solar ROI and energy efficiency, and helping homes transfer to a lifestyle with clean energy with a lower carbon footprint.

Learn more details about the NPV details in the FranklinWH white papers.

Empowering Consumers Through Energy Independence

Home energy storage solutions that incorporate TOU and backup functionality empower consumers to take control of their energy consumption and production. By strategically managing when to draw energy from the grid, when to store excess energy, and when to rely on stored power during outages, homeowners gain a level of energy independence that was previously unavailable. This not only provides financial benefits but also fosters a sense of responsibility and control over one's environmental impact.


The FranklinWH energy management system seamlessly integrates TOU pricing and backup functionality and is at the forefront of California's energy revolution.

By aligning with NEM 3.0 regulations, the FranklinWH system not only supports the state's clean energy goals but also offers homeowners a comprehensive solution to optimize costs, enhance resilience, and contribute to a more sustainable future.

As technology continues to advance, the versatile energy storage solution of FranklinWH will play a pivotal role in shaping the landscape of residential energy consumption in California and beyond.

Franklin Home Power