Solar panels and home batteries in the Bay Area: NEM 3.0, cost and upkeep
For Silicon Valley homes · Updated October 2026 · Sources below
New PG&E-area solar customers since April 2023 are on the Net Billing Tariff (often called NEM 3.0), which credits the power you send back based on its value to the grid at that hour. Midday exports are usually worth much less than evening ones, so a battery that stores daytime solar for the evening has become a much bigger part of the math. Palo Alto has its own city utility with different rules.
The short version
- Net Billing Tariff (NEM 3.0) applies to PG&E-area solar approved since April 15, 2023
- Export credits change by hour, day and season - evening power is worth the most
- PG&E grid power costs the most from 4 to 9 p.m.
- Older NEM systems keep their rules for 20 years - and the years transfer with the house
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What it costs
- Install home solar panels$18,292 - $36,409
- Solar cost per watt$2.50 - $3.50
- Add a home solar battery$6,000 - $12,000
System size, roof type, the battery and whether your panel needs work change the price. Get more than one quote.
Typical ranges from published cost guides - mostly national figures. Bay Area prices usually run higher. Your actual price depends on your home and the job, and a pro gives you the real number. Source: HomeAdvisor cost guide (national) (Jun 2026). Have a quote? Check it with the Quote Explainer
Solar, battery, or both?
- Already have solar on older NEM? You can usually add a battery without moving to the new tariff - confirm with your utility first.
- Going solar now on PG&E? Ask each installer to model your bill with and without a battery under the Net Billing Tariff.
- Have an older or smaller panel? Ask whether solar or a battery would need a panel upgrade.
- Production dropping? Check your monitoring app first, then have a pro clean and inspect the panels and connections.
In Silicon Valley
- The CPUC's Net Billing Tariff covers PG&E customers who applied on or after April 15, 2023. New customers get a nine-year legacy period on their terms.
- Silicon Valley Clean Energy says Solar Billing Plan export rates range from about two cents to over two dollars per kWh depending on month and hour, and pays annual surplus each spring.
- The CPUC reports that nearly 70 percent of Net Billing customers who installed solar by the end of 2024 paired it with a battery.
- City of Palo Alto Utilities says the CPUC's Net Billing Tariff doesn't apply to its customers; it keeps its own NEM 2 policy.
- Silicon Valley Power (Santa Clara) offers a battery rebate when paired with solar and a solar tune-up rebate for existing systems. Income-qualified households statewide may qualify for SGIP's Residential Storage and Solar Equity program.
Questions homeowners ask
What is NEM 3.0 in California?
It's the common name for the Net Billing Tariff, which the CPUC approved in December 2022. It applies to PG&E, SCE and SDG&E customers who applied for solar on or after April 15, 2023. Instead of crediting exports at near-retail rates, it credits them based on their value to the grid at that hour.
Is solar still worth it in the Bay Area under NEM 3.0?
It can be, but the math changed. PG&E says solar customers can save up to 40% on electric charges compared with non-solar customers. Ask installers for a bill estimate under the Net Billing Tariff, with and without a battery, and compare more than one quote.
Do I need a battery with solar now?
Not required, but it matters more than before. Under net billing, midday exports earn less, while PG&E power costs the most from 4 to 9 p.m. A battery lets you use your own solar in the evening instead of buying expensive grid power.
I already have solar. Does NEM 3.0 affect me?
Not if you applied before April 2023 - you keep your NEM rules for 20 years from when your system connected. PG&E says those years are tied to the system, so a home buyer inherits whatever is left. Expanding the system past certain limits can change that, so check before you add panels.
How much do solar panels and a battery cost?
National cost guides put home solar at about $18,000 to $36,000, or $2.50 to $3.50 per watt, and a home battery at about $6,000 to $12,000. Bay Area prices usually run higher, and system size, roof and panel work change the final number.
Do solar panels need cleaning?
Your monitoring app is the best guide. If production drops compared with the same month last year, have a pro clean the panels and check the wiring and connections rather than climbing on the roof yourself. Silicon Valley Power customers in Santa Clara can get a rebate toward a solar tune-up.
Do I need a permit for solar panels or a home battery?
Yes. Solar and battery systems need building and electrical permits, and the utility has to approve the system before you turn it on. Your installer normally handles both.
Do you need a permit?
Yes - solar and battery systems need building and electrical permits.
General guidance based on California's building code - your city can have stricter rules, and zoning, historic and HOA rules can apply too. Check with your city's building department before you start.
Check the rule for your cityRebates: Home battery
- Silicon Valley Power Residential Rebates
- Ava Community Energy rebates
Rebate programs change often and money runs out. Amounts are from each program's page as of Oct 2026 - always confirm on the program page, and check whether you must apply before you buy or install.
See the rebates for your ZIPSave with your neighbors
Solar panel cleaning & check is a job neighbors team up on: one pro, one trip down your street, a group price the pro sets. Three homes start it.
Start or join a Neighborhood Block DealQuestions to ask the pro
- Can you show my estimated bill under the Net Billing Tariff, with and without a battery?
- Does my roof need work before panels go on?
- Will my electrical panel need an upgrade?
- Who handles the permit and the utility's approval to turn it on?
- What do the panel, inverter, battery and labor warranties cover, and for how long?
Before you sign, check the contractor's license at cslb.ca.gov. How to hire a contractor in California
Need a solar & battery pro?
Tell us about the job in 2 minutes - free. We send it to one local pro at a time, never a crowd.
Related answers
Sources
- CPUC - Net Energy Metering and Net Billing Tariff
- PG&E - Solar Billing Plan
- Silicon Valley Clean Energy - Solar Billing Plan
- Silicon Valley Clean Energy - Net Billing Tariff FAQ
- City of Palo Alto Utilities - Net Energy Metering
- Silicon Valley Power - Solar and battery rebates
- CPUC - Residential Storage and Solar Equity program (SGIP)
- HomeAdvisor - Solar panel installation cost
- HomeAdvisor - Solar battery cost
General information for Silicon Valley homeowners, not professional advice for your home. Rules and programs change - check the source, and have a licensed pro look at your situation.