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🔋 NEM 3.0 · San Diego / SDG&E

Under NEM 3.0, does a battery pay off in San Diego?

SDG&E now pays about $0.06 for the solar you send back — but charges about $0.44 to buy it at night. Plug in your bill and see how fast a battery pays for itself by storing your own power instead of selling it cheap.

1Your SDG&E bill & solar use

$
Most San Diego homes only use ~20–45% of their solar while the sun is up. The rest gets exported to SDG&E for a fraction of its value.

2How many batteries?

Each Powerwall-class battery stores about 13.5 kWh of usable power (installed ~$11,500). More batteries store more of your midday solar for night use.
Why storage now matters: under NEM 3.0, SDG&E pays roughly $0.06/kWh for exported solar but charges about $0.44/kWh when you buy it back after sunset — nearly a 7× gap. A battery lets you keep your own cheap daytime power instead of selling low and buying high.
Battery payback under NEM 3.0
– years
to earn the battery back from bigger solar savings
✓
Recommended solar sizesized to offset ~100% of use
0 kW
Solar-only valueNEM 3.0 export at ~$0.06
$0 /yr
Solar + battery valueself-use at ~$0.44
$0 /yr
Extra from the battery
+$0 /yr
Battery cost (installed)1 × $11,500
$0

Get your exact NEM 3.0 battery plan

We'll size a solar + battery system for your SDG&E bill and roof — free, no pressure.

✓ Thanks! A Higher Power Solar advisor will reach out with your custom NEM 3.0 battery plan.
Estimates are for planning only and depend on your real rate plan, usage pattern, and battery behavior. Powerwall® is a trademark of Tesla, Inc. Prefer to talk now? Call (619) 456-5352.

How this NEM 3.0 payback is calculated

Under NEM 3.0, the money is in using your own solar, not selling it. We start with your bill to estimate how much power you use in a year, then size a solar system to cover it. The solar you use live in the daytime is worth the full retail rate (~$0.44/kWh in San Diego). Everything you export earns only the NEM 3.0 credit (~$0.06/kWh). A battery captures the exported power you'd otherwise sell cheap and lets you use it at night at the ~$0.44 rate instead — the difference is your extra savings, and dividing the battery's installed cost by those savings gives the payback in years. This works for any high-rate utility, not just SDG&E.

Note: the 30% federal residential solar credit (Section 25D) expired December 31, 2025, so these numbers do not assume it for a cash or loan purchase. California incentives — NEM 3.0 net billing and SGIP battery rebates — are unchanged, and a lease or PPA can still capture the commercial 48E credit. Ask us which path fits your home.

Is solar worth it in San Diego without a battery?
Solar still lowers your bill — but under NEM 3.0, SDG&E only pays about $0.06 for the power you export while charging around $0.44 to buy it back at night, roughly a 7x gap. Without a battery you "sell low and buy high," so most of your midday solar loses about 85% of its value. A battery stores that cheap daytime power so you use it after sunset instead of buying from the grid — which is where most of the savings now come from.
What is NEM 3.0?
NEM 3.0 (officially the Net Billing Tariff) is the solar export rule SDG&E, SCE, and PG&E use for systems connected after April 2023. Instead of paying full retail for the solar you send to the grid — the way old NEM 2.0 did — utilities now pay a much lower "avoided cost," often around $0.05–$0.08/kWh, while you still buy grid power at full retail. That mismatch is why pairing solar with a battery makes far more financial sense than it did under NEM 2.0.
How much can a battery save under NEM 3.0?
It depends on how much solar you'd otherwise export cheaply. This calculator values every kWh your battery lets you self-consume at the ~$0.44 you'd have paid the utility, instead of the ~$0.06 export credit. For a typical San Diego home that's often $1,000–$3,000+ a year, which is what sets your payback period. The more of your solar you currently export, the faster a battery pays off.
Does the 30% federal tax credit still cover my battery?
For a system you buy with cash or a loan, the 30% federal residential credit (Section 25D) expired December 31, 2025, so we don't build it into these numbers. California incentives like NEM 3.0 net billing and SGIP battery rebates are unchanged, and a lease or PPA can still capture the commercial 48E credit. See our battery options →