How does the California Rate Relief Program work?

We install solar panels on your roof at no cost out of pocket. Instead of paying your utility company a different amount every month, you pay a fixed monthly payment that is typically 30 to 50% less than what you are currently paying. The program covers 100% of the cost for solar panels, backup batteries, and installation.

Who qualifies for the Rate Relief Program?

California homeowners with SCE, PG&E, or SDG&E as their utility provider, monthly electric bills of $150 or more, and a credit score of 650 or above typically qualify. Renters are not eligible for this program.

Is there any cost to the homeowner?

There is $0 out of pocket cost. The program covers the full cost of solar panels, battery storage, and professional installation. Instead of paying your utility company, you simply pay a lower, fixed rate for the power generated by the system on your roof.

What happens if something breaks?

The program includes a comprehensive 25-year bumper-to-bumper warranty. If a panel breaks, it gets fixed. If an inverter fails, it gets replaced. All maintenance and repairs are covered at no cost to you for 25 years.

Which utility companies are supported?

The program currently supports homeowners with Southern California Edison (SCE), Pacific Gas & Electric (PG&E), San Diego Gas & Electric (SDG&E), Moreno Valley Utility (MVU), and Los Angeles Department of Water and Power (LADWP).

NEM 2.0 vs NEM 3.0 California: What Changed and What It Means For You

California's solar billing tariff changed in April 2023 from NEM 2.0 to NEM 3.0 (officially the Net Billing Tariff, or NBT). If you installed solar before April 15, 2023, you're on NEM 2.0 and grandfathered in for 20 years. If you installed after that date, you're on NEM 3.0. The difference between the two is worth tens of thousands of dollars over the life of a typical solar system. Here's the plain-English side-by-side.

Side-By-Side Comparison

What	NEM 2.0	NEM 3.0 (NBT)
In effect	Jan 2016 – Apr 14, 2023	Apr 15, 2023 – present
Export credit rate	~Retail rate (~30-40¢/kWh)	Avoided cost (~5-8¢/kWh avg)
Billing structure	Net (consume minus export)	Separate (buy retail, sell wholesale)
Battery required?	No (export still valuable)	Effectively yes (self-consumption matters)
Solar-only payback	7-9 years	12-15 years
Solar + battery payback	8-11 years	9-12 years
Grandfather period	20 years from interconnection	Not yet determined

The Core Difference, In One Sentence

Under NEM 2.0, electricity your panels exported was worth essentially the same as electricity you bought from the utility. Under NEM 3.0, exported electricity is worth about one-fifth of what you pay to buy it back. That's the entire story, and everything else flows from it.

What NEM 2.0 Lets You Do

If you're grandfathered under NEM 2.0, your meter effectively runs backward when you export solar to the grid. Export 10 kWh at 40¢/kWh during the day, earn $4 in credit. Consume 10 kWh at 40¢/kWh at night, pay $4. The economics are symmetric. Oversizing your solar system to maximize export was a rational strategy, and a correctly sized NEM 2.0 system can offset 90%+ of your annual electric bill without needing a battery.

Your 20-year grandfathering runs from the date your system was officially interconnected (PTO — Permission to Operate), not from the installation date. A system that got PTO on March 15, 2023 stays on NEM 2.0 until March 15, 2043. After that, you transition to whatever tariff is in effect at that time.

What NEM 3.0 Forces You To Do

Under NEM 3.0, the asymmetric pricing between exported and consumed electricity changes the entire system design strategy. Self-consumption — using your solar production in real time, or storing it in a battery for evening use — is now dramatically more valuable than exporting to the grid.

A NEM 3.0 solar-only system still works, but only offsets 40-60% of typical California consumption because most production happens during the day when nobody's home to use it. Adding a battery brings self-consumption up to 70-90%, which restores most of the economics but adds $10,000-$15,000 to the system cost (partially offset by the SGIP rebate and the federal tax credit on storage).

Can You Keep NEM 2.0 When You Expand Your System?

Partially. Adding a battery to an existing NEM 2.0 system generally preserves your NEM 2.0 status — the battery is a storage add, not new generation capacity, so it doesn't trigger a tariff switch.

Adding panels gets more complicated. A small capacity expansion (typically under 1 kW or 10% of existing size, whichever is larger) usually stays on NEM 2.0. Above that threshold, the new capacity moves to NEM 3.0 while the original system stays on NEM 2.0 — a "hybrid" arrangement that utilities handle but which adds billing complexity. Rules vary by utility (PG&E, SCE, SDG&E each have slightly different implementations); confirm with your utility before adding panels.

Frequently Asked Questions

Is NEM 2.0 better than NEM 3.0?

Yes, significantly. NEM 2.0 credits exported solar at retail rate (~30-40¢/kWh in California). NEM 3.0 credits it at avoided cost (~5-8¢/kWh). Same system, very different savings.

Am I on NEM 2.0 or NEM 3.0?

Check your interconnection date (PTO date). Before April 15, 2023 = NEM 2.0. On or after = NEM 3.0. Your utility bill also lists the applicable tariff.

Can new solar customers still get NEM 2.0?

No. NEM 2.0 closed to new interconnections on April 14, 2023. All new California residential solar interconnections are under NEM 3.0.

Does NEM 3.0 make solar not worth it?

Solar still works under NEM 3.0, especially with a battery. Payback is slower (9-12 years with storage vs 7-9 under NEM 2.0), but still strong for most California homeowners paying $200+ per month. See our NEM 3.0 worth-it analysis for the full breakdown.