Top Takeaways
Time-of-Use rates are required (4-9 pm on-peak)
Export credits are given for solar sent to the grid
Pairing solar with battery storage can maximize utility savings
Net Billing Tariff (NEM 3)
California's Net Billing Tariff, also called NEM 3 and the Solar Billing Plan, is applicable in Investor Owned Utilities PG&E, SCE, and SDGE. Many municipal utilities have also adopted export credits, however, a few have not including LADWP which continues to provide net metering.
TOU Charges
Time-of-Use (TOU) rates are required when installing solar under NEM 3. With TOU, utility charges are higher during on-peak hours, and lower during off-peak hours. On-Peak time periods are 4-9pm, everyday, in the NEM 3 eligible TOU rates.
Export Credits
There is no 1-to-1 net metering in most utilities in California when excess solar is sent to the electric grid. Instead export credits are provided for all solar production not stored in a battery or immediately consumed in the home. The NEM 3 export credit value changes every hour of the day, and is almost always lower than the retail rate the utility charges except for a few 'power hours' in the evenings of August and September. Uniquely with NEM 3, the majority of the solar savings value comes from consuming and storing solar inside the home.
To maximize savings, homeowners are encouraged to shift electricity usage away from on-peak time periods and pair solar systems with battery storage allowing you to import less from energy from the grid.
San Diego Gas & Electric states it best:
Select your utility to learn more
Pacific Gas & Electric "PG&E"
Pacific Gas & Electric "PG&E"
PG&E NEM 3 customers are placed on the Electric Home rate plan, E-ELEC.
E-ELEC price per kWh rates for grid usage in effect as of March 1, 2025.
E-ELEC | Period | Hours, everyday | $/kWh |
Summer (June-Sept) | Peak | 4-9pm | $0.61 |
Partial-Peak | 3-4pm, 9pm-12am | $0.45 | |
Off-Peak | 12am-3pm | $0.40 | |
Winter (Oct-May) | Peak | 4-9pm | $0.38 |
Partial-Peak | 3-4pm, 9pm-12am | $0.35 | |
Off-Peak | 12am-3pm | $0.35 |
Average Rates: The average hourly export credit in 2025 is estimated at 3-6 cents per kWh. With the average retail rate under E-ELEC over 40 cents per kWh, it's clear why the goal is to use solar in the home (or store it for later) rather than receiving a low export credit.
Solar savings will be a blend of the retail rates and export credits for each kilowatt-hour (kWh) of solar energy produced. With storage and shifting usage away from on-peak consumption, the blended average savings per kWh will be higher.
There's a monthly fixed charge of $15 per month, which may not be reduced by solar export credits. Note that PG&E is adopting a $24 fixed charge for all customers with or without solar in early 2026.
Tips in PG&E
In the Summer, try to reduce grid consumption during 4-9pm peak hours. You can worry less about peak in the Winter months since the retail rates in Winter are not that different for each time period.
Charging an Electric Vehicle in the morning is recommended while your solar system is producing, and it's still off-peak pricing. Air conditioning is one of the largest electricity loads. Try pre-cooling your home in the afternoon, and turn it off at 4pm.
Learn more from PG&E about the Solar Billing Plan including a sample bill.
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Southern California Edison "SCE"
Southern California Edison "SCE"
SCE NEM 3 customers are placed on rate plan TOU-D-PRIME
Summer Rates (June - September)
Winter Rates (October - May)
TOU-D-PRIME price per kWh rates for grid usage in effect as of June 1, 2025.
TOU-D-PRIME | Period | Hours | $/kWh |
Summer (June-Sept) | On-Peak | 4-9pm weekdays | 0.55 |
Mid-Peak | 4-9pm weekends | 0.37 | |
Off-Peak | 9pm-4pm everyday | 0.25 | |
Winter (Oct-May) | On-Peak | 4-9pm everyday | 0.52 |
Mid-Peak | 9pm-8am everyday | 0.24 | |
Off-Peak | 8am-4pm everyday | 0.24 |
Average Rates: The average hourly export credit in 2025 is estimated at 4-7 cents per kWh. With the average retail rate under TOU-D-PRIME over 33 cents per kWh, it's clear why the goal is to use solar in the home (or store it for later) rather than receiving a low credit.
Solar savings will be a blend of the retail rates and export credits for each kilowatt-hour (kWh) of solar energy produced. With storage and shifting usage away from on-peak consumption, the blended average savings per kWh will be higher.
There's a monthly fixed charge of $15 per month, which may not be reduced by solar export credits. Note that SCE is adopting a $24 fixed charge for all customers with or without solar in late 2025.
Tips in SCE
#1 thing to remember in SCE is to reduce consumption during 4-9pm peak hours everyday, year round. On-Peak rates are high in the summer and winter.
Charging an Electric Vehicle in the morning is recommended while your solar system is producing and it's still off-peak pricing. Air conditioning is one of the largest electricity loads. Try pre-cooling your home in the afternoon, and turn it off at 4pm.
Learn more from SCE on the Solar Billing Plan and a solar bill guide.
Sample Bill
Sample Bill
San Diego Gas & Electric "SDGE"
San Diego Gas & Electric "SDGE"
SDGE NEM 3 customers are placed on the EV-TOU-5. Yes, even if you do not have an electric vehicle, solar customers are placed on the EV-TOU-5 rate.
EV-TOU-5 price per kWh rates for grid usage in effect as of June 1, 2025.
EV-TOU-5 | Period | Hours | $/kWh |
Summer (June-Oct) | On-Peak | 4-9pm everyday | 0.731 |
Off-Peak | All other hours | 0.475 | |
Super Off-Peak* | 12am-6am weekdays + 12am-2pm weekends | 0.112 | |
Winter (Nov-May) | On-Peak | 4-9pm everyday | 0.50 |
Off-Peak | All other hours | 0.45 | |
Super Off-Peak* | 12am-6am everyday + 12am-2pm weekends | 0.114 |
*10am-2pm in March & April weekdays are also Super Off-Peak
Average Rates: The average hourly export credit in 2025 is estimated at just 3 cents per kWh. With the average retail rate under EV-TOU-5 over 40 cents per kWh, it's clear why the goal is to use solar in the home (or store it for later) rather than receiving a low credit.
Solar savings will be a blend of the retail rates and export credits for each kilowatt-hour (kWh) of solar energy produced. With storage and shifting usage away from on-peak consumption, the blended average savings per kWh will be higher.
There's a monthly fixed charge of $15 per month, which may not be reduced by solar export credits. Note that SDGE is adopting a $24 fixed charge for all customers with or without solar in late 2025.
Tips in SDGE
In SDGE, On-Peak rates are especially high in the summer. it's important to reduce consumption during 4-9pm peak hours (7 days a week).
SDGE has a great super off-peak rate from midnight to 6am (and until 2pm on weekends). Shift any controllable loads like charging an EV to super off-peak hours.
Learn more from SDGE on the Solar Billing Plan and Understanding your solar bill.
Sample Bill for CCA customers
Sample Bill for CCA customers
Sample Bill for non-CCA customers
Sample Bill for non-CCA customers
Los Angeles Department of Water & Power "LADWP"
Los Angeles Department of Water & Power "LADWP"
LADWP still offers 1-to-1 net metering!
Time-of-Use is optional, and pairs well with solar
1-to-1 Net Metering
As a municipal utility, LADWP is not governed by the same rules as the other utilities. LADWP offers 1-to-1 net metering meaning production and consumption 'net,' or subtract, at the same retail rate the utility charges you.
Rate Plan Options
Most LADWP customers are on the R-1A Standard Residential Rate. R-1A charges are tiered with a $10 per month minimum bill. Excess NEM credits cannot apply to several adjustments causing large NEM banks to rollover to future months while the customer incurs charges the current month.
R-1B Time of Use Residential Rate is recommended for most solar customers. It works well for solar customers who can reduce consumption during 1-5pm on-peak hours (or pair the system with battery storage). While there's a $12 monthly fixed charge, there is no minimum bill, so excess credits can offset the entire electric bill.
Learn more by watching LADWP's Reading Your Solar Bill video