Grid & off-grid

Net metering calculator, California

Enter your exact usage, system size, and rate details to see how California's net metering policy affects your solar bill, with precise controls for season, tiered rates, and fixed fees.

Your numbers

1 Project details Optional
Shown on your exported report. Leave blank to skip.
2 Your usage and system
Find this on a recent utility bill, usually labeled kWh used.
Use your quoted or planned system size. Panel count times panel wattage divided by 1,000 gives a rough figure.
Solar production swings seasonally; pick a specific month type to see how your bill shifts.
Most utilities charge a flat customer or connection fee regardless of usage.
3 Your location and rate
Defaulted to California's average peak sun hours. Adjust if you know your local figure.
Defaulted to California's current average residential rate. Your utility's actual rate may differ.
California typically credits exports around 20% of retail. NEM 3.0 / Net Billing Tariff: hourly avoided-cost export credit, typically 20 to 30 percent of the retail rate.
Some utilities charge progressively higher per-kWh rates as monthly usage climbs into higher tiers.
Accounts for inverter loss, wiring loss, dust, and temperature derate combined.
Informational only. A monthly cycle means unused export credit does not carry to the next bill; annual and rolling cycles do.

How it works

Three steps to your California solar bill estimate

Step 1

Enter your usage, system size, and season

Pull your monthly kWh from a recent bill and enter your planned or quoted system size in kW. If you only know your panel count, multiply it by each panel's wattage and divide by 1,000 to get a kW figure first. Select a season to model a specific month rather than only an annual average.

Step 2

Confirm your rate, tier, and export credit

California's typical residential rate and export credit level are filled in by default. Swap in your utility's actual tariff numbers, tier bracket, and fixed monthly fee if you have a recent bill or interconnection agreement showing them.

Step 3

Compare the result to a full retail scenario

Run the net billing vs net metering comparison tool to see exactly how much California's current export credit rate costs you compared to full 1:1 retail crediting.

How net metering works in California

NEM 3.0 is officially the Net Billing Tariff

California's current solar export policy took effect April 15, 2023 for PG&E, SCE, and SDG&E customers, replacing the older NEM 2.0 program. The California Public Utilities Commission calls it the Net Billing Tariff, under Decision 22-12-056; "NEM 3.0" is the informal name that stuck. Export credits are avoided-cost based and vary by hour of day under this net billing structure, typically landing around 5 to 8 cents/kWh, versus roughly 30 cents/kWh under the old NEM 2.0 structure, a drop of about 75%.

Grandfathering protects systems installed before the cutoff

Systems interconnected before April 14, 2023 keep NEM 2.0 crediting for a 20-year grandfather period from their interconnection date, so a system connected in 2022 holds its NEM 2.0 rate until 2042. If you're buying a home with existing solar, confirming which program that system falls under matters more in California than almost anywhere else on this list. If net billing is unfamiliar, the glossary entry for it is a quick read.

Not every California utility uses NEM 3.0

The Net Billing Tariff applies only to the state's three big investor-owned utilities. LADWP in Los Angeles and SMUD in Sacramento run their own separate net metering rules, which as of now remain closer to traditional retail-rate crediting; the CPUC keeps a running comparison of all three tariff versions if you want to see how the terms differ. That means two California homeowners under different utilities can face very different export economics for an identical system. Before you model credits, confirm the size. The roof space vs output estimator in our System Sizing section can help you work out the panel count from your usage.

Why battery storage became central to the math

With exports now worth roughly a quarter of what they were under NEM 2.0, storing midday surplus for evening use captures value that would otherwise be sold back at a steep discount, which is why batteries have become close to standard on new California solar installs; California's tax credit and rebate estimator can factor in what incentives apply to the storage side too.

Interconnection and what off-grid would cost instead

Interconnecting under NEM 3.0 still runs through the same utility application, equipment, and inspection process as any other state; the grid interconnection cost estimator covers what to expect. And even with reduced export value, staying grid-tied remains far cheaper than going fully off-grid; the grid tie vs off grid comparison tool shows how much cheaper using California's current figures.

Questions

Frequently asked

California's current program, NEM 3.0 (the Net Billing Tariff), took effect April 2023 for PG&E, SCE, and SDG&E, crediting exports at an avoided-cost rate that varies by hour, typically 5 to 8 cents/kWh, versus roughly 30 cents/kWh under the older NEM 2.0. Pre-2023 systems keep NEM 2.0 for a 20-year grandfather period.

The average residential rate in California is about 33.3 cents per kWh, among the highest in the continental US. NEM 3.0 credits exports at a much lower avoided-cost rate that varies by hour.

Generally no, adding storage alone to an existing NEM 2.0 system typically doesn't move you onto NEM 3.0, though a significant change to the solar system itself, like a meaningful capacity increase, can trigger a new interconnection application. Confirm the specifics with your utility before making changes to a grandfathered system.

No. The Net Billing Tariff (NEM 3.0) applies only to PG&E, SCE, and SDG&E. LADWP in Los Angeles and SMUD in Sacramento operate under their own separate net metering rules, which are not governed by the same California Public Utilities Commission decision.

Related tools

Compare California's policy to other structures

Grid tie vs off grid comparison Net billing vs net metering Buy all sell all vs net metering Avoided cost rate calculator Grid export cap calculator Grid interconnection cost estimator Grid tie with battery backup comparison All grid and off-grid tools