Battery Storage for Solar Under NEM 3.0 in Los Angeles
NEM 3.0 (Net Billing) changed the math for SCE solar customers in Los Angeles and Orange County — lower export rates make self-consumption via battery storage a common planning strategy. We pair Tesla Powerwall and Enphase IQ Battery with new and existing solar systems, planned around your utility, load profile, and backup goals. Tesla Certified Premium Installer.
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NEM 3.0 applies to SCE, PG&E, and SDG&E — not LADWP.
This is the most important thing to understand before planning solar + battery in Los Angeles. Your utility determines which rules apply.
- →LADWP customers. LADWP (Los Angeles Department of Water and Power) is a municipal utility, not subject to California PUC’s NEM 3.0 rules. LADWP runs its own net-metering program with its own export rate structure. Most of the City of Los Angeles — Encino, Studio City, Van Nuys, Koreatown, Silver Lake, Echo Park — is LADWP territory. NEM 3.0 does not apply. We review LADWP’s current net-metering rules during your estimate.
- →SCE customers. Southern California Edison serves many Orange County and LA County addresses, but several nearby cities have municipal utilities or mixed service areas. If your specific address is on SCE, NEM 3.0 (Net Billing) may apply, and battery storage planning should be reviewed under current SCE interconnection and rate rules.
- →Not sure which utility serves your address? We confirm at the start of every estimate. It is one of the first things we establish — it determines export rates, available rebate programs, and how we size and configure the system.
How NEM 3.0 shifts solar + battery economics.
Under prior NEM 2.0, SCE solar customers received relatively generous export credits for excess solar sent to the grid. Under NEM 3.0 (Net Billing), those export credit rates are significantly lower. The strategic result:
- →Self-consumption is worth more than export. A kilowatt-hour stored in your battery and used at home can reduce grid purchases. The value depends on the rate plan, battery settings, usage pattern and applicable export credit.
- →Evening peak is the leverage point. Under SCE time-of-use plans, electricity is most expensive during evening peak hours. A battery charged by solar during the day and discharged in the evening peak offsets the highest-rate grid power of the day.
- →Battery payback dynamics shifted. We model expected performance based on your specific rate plan, usage, and system design. We do not promise any specific financial outcome or payback period — these depend on future rate changes, usage, and conditions outside our control.
No specific savings outcome is implied. Rate plans, usage, and future utility rate changes affect actual system performance. We are not a financial advisor.
How solar + battery self-consumption works in practice.
Morning: Solar covers the home
Panels generate power. The home draws from solar first; excess begins charging the battery.
Midday: Battery charges
Peak solar fills the battery. Surplus beyond battery capacity exports at NEM 3.0 rates.
Evening peak: Battery discharges
Solar output drops. Battery powers the home during the SCE peak rate window.
Night: Grid or reserve
After battery depletes, the home draws from the grid. A backup reserve can be held for outage protection.
AC coupling vs. DC coupling: retrofitting battery storage.
- →AC coupling (most common retrofit). The battery connects to the home’s AC electrical system alongside the existing solar inverter. Compatible with virtually any grid-tied solar system. Tesla Powerwall 3 and Enphase IQ Battery 5P are both designed for AC-coupled retrofits and work with most existing solar installations.
- →DC coupling (new systems or compatible setups). The battery integrates directly with a compatible solar inverter, allowing power to flow from panels to battery without an AC conversion step. Tesla Powerwall 3’s integrated inverter supports DC coupling in new solar + battery installations.
- →Interconnection review. Adding battery storage to an existing solar system may require a new interconnection application with SCE, depending on the scope of change. Requirements vary. We assess what is required for your specific system and current SCE policies during the estimate.
Tesla Powerwall installation guide → · Enphase battery installation →
SGIP and utility incentives for solar + battery.
- →SGIP eligibility review. California’s Self-Generation Incentive Program may offer rebates for qualifying battery installations in SCE and LADWP territories. Eligibility depends on reservation window, available funding, battery size, income tier, and current program rules. Rebate approval is subject to program rules. We review eligibility and help organize documentation during your estimate.
- →SCE utility programs. Other utility or manufacturer programs should be reviewed under current rules before being presented as available. Subject to current program status, eligibility, and funding. We review applicable pathways during your estimate.
- →Tax questions. We are not a tax advisor. For questions about the tax treatment of battery storage or any related credits, consult a qualified tax professional.
SGIP planning guide → · SCE solar + battery → · LADWP vs SCE guide →
Get your solar + battery estimate.
NEM 3.0-aware planning for SCE customers. LADWP program review for LADWP customers. Tesla Powerwall and Enphase IQ Battery. SGIP eligibility review. Tesla Certified Premium Installer. CSLB #1055444.
Solar, roofing & battery together.
Solar battery under NEM 3.0 questions.
Does NEM 3.0 apply to LADWP customers in Los Angeles?
No. NEM 3.0 (Net Billing) applies to investor-owned utilities — SCE, PG&E, and SDG&E — regulated by the California PUC. LADWP is a municipal utility and runs its own net-metering program, separate from NEM 3.0 rules. LADWP customers should review LADWP’s current net-metering program specifically for their property.
How does NEM 3.0 change the economics of adding a battery to solar for SCE customers?
Under NEM 3.0, export credit rates for solar power sent to the SCE grid are significantly lower than under prior NEM 2.0. The financial value of exporting excess solar has decreased, making self-consumption via battery storage a common planning strategy. Storing daytime solar for evening use can reduce evening grid purchases and may be more valuable than exporting excess production, depending on the customer’s rate plan, load profile and battery settings.
Can I add a battery to my existing solar system?
Yes. Battery storage can be added to most existing grid-tied solar systems via AC coupling — the battery connects to the home’s AC circuits alongside the existing solar inverter. Some systems may support DC coupling where the battery integrates with a compatible inverter. We assess your existing solar system, inverter type, and electrical panel during the estimate to confirm the right approach.
Does adding battery storage trigger a new NEM 3.0 interconnection for SCE customers?
Adding battery storage to an existing NEM 2.0 solar system may require a new interconnection application with SCE under NEM 3.0 rules, depending on the scope of change. Requirements vary based on system configuration and SCE’s current interconnection policies. We assess what is required based on your specific system during the estimate.
Is SGIP available for batteries paired with NEM 3.0 solar in SCE territory?
SGIP eligibility may apply to battery storage in SCE territory, including systems paired with NEM 3.0 solar. Eligibility depends on battery size, income tier, reservation window, available funding, and program rules. Rebate amounts are subject to program approval. We review SGIP eligibility and help organize required documentation during your estimate.
Plan your solar + battery system under NEM 3.0.
Tesla Certified Premium Installer. CSLB #1055444. We are not a tax advisor — consult a qualified professional for tax questions.
