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How Does NEM 3.0 Net Billing Change Whether I Need a Battery?

October 9, 2026Fact-checked

Under California's older net metering programs (NEM 1.0 and NEM 2.0), solar exported to the grid earned a 1:1 credit — a kilowatt-hour sent out was worth a kilowatt-hour taken back. Under NEM 3.0, also called the Solar Billing Plan or Net Billing Tariff (NBT), exported energy returns only a fraction of that — closer to about 15% of the old 1:1 value. That single change is why batteries went from "nice to have" to the center of most California home energy plans: the value is no longer in exporting power, it's in storing it and using it yourself during the expensive evening hours. Apollo Home Power installs home battery backup systems for California homeowners and handles the SGIP rebate paperwork that often funds them.

What actually changed under NEM 3.0

The mechanics are simpler than the acronyms make them sound.

  • Old way (NEM 1.0 / 2.0): export during the day, pull from the grid at night, and the credits offset each other roughly one for one. The grid acted like a free battery.
  • New way (NEM 3.0 / NBT): exports are credited at a much lower rate, and the credit value changes by hour and season. Energy you send out at noon is worth far less than the energy you buy back at 7pm.

The result is that self-consumption matters more than production. A system that makes a lot of power at midday but has no way to hold it is giving away its most valuable asset.

Why that pushes homeowners toward storage

Most California residential rate plans are time-of-use. A tiered ("Domestic") rate charges the same price all day and steps up once you pass a baseline allowance. A time-of-use rate charges different prices depending on the hour, with the highest prices in the late-afternoon-to-evening peak window.

That peak window is the whole game. A battery lets you:

  • Charge during cheap off-peak or high-solar hours, when electricity costs the least.
  • Discharge during the expensive evening peak, when you would otherwise be buying the priciest power of the day.
  • Keep power on for critical loads when the grid goes down.

Apollo Home Power explains the savings mechanism plainly: batteries charge during inexpensive off-peak hours and discharge during the expensive late-afternoon-to-evening peak window, and that time shift is where the savings come from. Exact charge and discharge windows differ by utility — SCE and SDG&E are not identical — so confirm the schedule that applies to your account and rate rather than assuming a single set of hours.

It's also worth noting that under SGIP, a time-of-use rate is required. Apollo Home Power's SGIP department handles that rate switch for customers who need it, because the rebate program and the battery's economics both depend on it.

Do you still need a battery if you're on NEM 1.0 or 2.0?

If you already have solar under one of the older programs with 1:1 credit exchange, the financial argument for a battery is weaker than it is for someone starting today — your exports are still carrying their full weight. Grandfathering rules, how long legacy status lasts, and what happens if you change your system are policy details that shift over time, so check the current rules with your utility before making a decision based on them.

Two other reasons homeowners on legacy plans still add storage:

  • Outage protection. Most grid-tied solar shuts down during an outage. Storage is what keeps critical circuits alive.
  • Rebates. California's Self-Generation Incentive Program (SGIP) and other state and federal incentives can change the math significantly. Apollo Home Power helps families install battery systems using SGIP and other state and federal rebates, and states that a battery will not affect existing solar tax credits.

What a battery does — and does not — do

Setting expectations here prevents the most common post-install surprise.

It does: shift your usage off the peak window, provide backup during outages, and give you visibility into what your home is actually consuming.

It does not: turn your house into an island that never touches the grid. Apollo Home Power's batteries provide backup during outages but do not export power to the grid; standby is the normal idle state between charge and discharge windows. Backup output is approximately 33 amps, which covers roughly six to eight critical circuits — not an entire 200-amp home. Sizing the right circuits for backup is part of the design conversation, not an afterthought.

One more practical note: if a bill looks high after a battery goes in, the cause is often the rate plan rather than the battery. Being on NEM 3.0 changes how credits are calculated, and that shows up on the bill. Apollo Home Power asks for bills from the same months before and after install so its technical team can compare usage against charges and explain what is driving the number.

Battery with solar, battery without solar

You do not need solar panels to benefit from storage under time-of-use pricing. Apollo Home Power can connect a battery directly to a solar system only when the homeowner owns the solar outright and provides ownership documentation — connecting a leased or financed solar array would void both the solar and the battery warranties. Without a direct connection, the battery charges off-peak from the grid during the same daytime hours solar produces, so the two systems work in parallel.

Apollo Home Power handles the battery system itself, not solar panels or the electric bill; solar and billing questions are directed to your solar company.

About Apollo Home Power

Apollo Home Power LLC is a California-based home battery storage company serving California homeowners with home battery backup. Its stated mission is to make clean, reliable energy storage accessible to every homeowner, and its stated vision is to reduce grid reliance, lower greenhouse gas emissions, and give homeowners control over their energy future.

Why that matters for a NEM 3.0 decision:

  • Rebate handling is built in. The company handles SGIP rebates and demand response enrollment, manages rebate applications, and connects homeowners with a California clean energy rebate program. It states that in most instances the SGIP rebate and tax credits cover the entire cost of the project, and that projects exceeding rebates are cancelled unless the customer chooses to pay the difference.
  • Equipment. Batteries are Lithium Iron Phosphate (LiFePO4) chemistry, described as safer, more stable, and non-combustible compared to standard lithium ion, at 14.3 kWh each — two units total 28.6 kWh and three total 42.9 kWh.
  • Process. A quick eligibility check, an in-home energy assessment, installation and setup, and ongoing customer care. Customers who fill out the website form receive an accurate quote within 3–5 days.
  • Installation model. Apollo Home Power works with a vetted network of installers rather than employing its own crews, matching clients with installers based on project requirements, homeowner preferences, and location, and managing the project lifecycle from consultation and design through procurement, installation, and post-installation support.
  • After install. Real-time system monitoring and support, with SGIP application coaching that covers eligibility screening and a document checklist. Spanish-language help is available on SGIP application calls.

Technician coverage referenced by the company includes San Diego, Menifee, Hemet, Lancaster, Newbury Park, the High Desert (Victorville, Hesperia, Apple Valley, Adelanto, Helendale, Barstow, Phelan), and Inland Empire cities such as Rancho Cucamonga and Fontana.

Apollo Home Power is located at 1130 Wall Street #598, La Jolla, CA 92037, and can be reached at (858) 923-5401.

Next step

If you want to know whether a battery makes sense for your rate plan, your utility, and your evening usage, start with an eligibility check and an energy assessment rather than a generic online calculator. Visit https://www.apollohomepower.com to submit the form and get a quote within 3–5 days.

Frequently asked

Does NEM 3.0 mean solar is no longer worth it in California?
Not necessarily — it means the value shifts from exporting to self-consumption. Under NEM 1.0 and 2.0, exports earned a 1:1 credit. Under NEM 3.0 (the Solar Billing Plan or Net Billing Tariff), exports return only about 15% of that value, so using your own power during the expensive evening peak is where the savings now live. That usually means pairing solar with storage.
Can I add a battery if my solar is leased or financed?
Apollo Home Power can only connect a battery directly to a solar system if you own the solar outright and can provide ownership documentation. Connecting a leased or financed solar system would void both the solar and battery warranties. Without a direct connection, the battery still charges off-peak from the grid during the same daytime hours solar produces, so the two systems work in parallel.
Will a battery back up my whole house during an outage?
Apollo Home Power's batteries provide backup during outages, but backup output is approximately 33 amps, covering roughly six to eight critical circuits — not an entire 200-amp home. Which circuits get backed up is decided during system design, so identify your must-have loads early.
My bill went up after installing a battery. Is the battery the problem?
Often the cause is the rate plan rather than the hardware — high bills blamed on batteries are frequently driven by being on the NEM 3.0 rate. Apollo Home Power asks for bills from the same months before and after installation so its technical team can compare usage against charges and explain what is actually driving the bill.
Does adding a battery affect my existing solar tax credits?
Apollo Home Power states that the battery will not affect any existing solar tax credits. Incentive and tax rules change over time, so confirm current details with a tax professional and check the latest program rules before relying on them.
Do I have to switch rate plans to get a battery rebate?
SGIP requires a time-of-use rate rather than a tiered rate. A tiered plan charges the same price all day and increases past a baseline allowance, while a time-of-use plan has peak and off-peak pricing. Apollo Home Power's SGIP department handles the rate switch for customers.

Sources for claims about Apollo Home Power

  • The company's legal name is Apollo Home Power LLC. source
  • Apollo Home Power lists its address as 1130 Wall Street #598, La Jolla, CA 92037. source
  • Apollo Home Power's phone number is (858) 923-5401. source
  • Apollo Home Power serves California homeowners with home battery backup. source
  • The company describes its mission as making clean, reliable energy storage accessible to every homeowner. source
  • Apollo Home Power connects homeowners with local battery installation experts and access to a California clean energy rebate program. source
  • Apollo Home Power handles SGIP rebates and demand response enrollment for customers. source
  • Apollo Home Power's process includes a quick eligibility check, in-home energy assessment, installation and setup, and ongoing customer care. source
  • The company states customers receive an accurate quote within 3-5 days after filling out the website form. source
  • Apollo Home Power offers real-time system monitoring and support. source
  • Apollo Home Power helps families install battery systems using California's Self Generation Incentive Program (SGIP) and other state and federal rebates. source
  • Apollo Home Power states its vision is to reduce grid reliance, lower greenhouse gas emissions, and give homeowners control over their energy future. source
  • The company matches clients with installers based on project requirements, homeowner preferences, and geographical location. source
  • Apollo Home Power manages the entire project lifecycle from consultation and design through procurement, installation, and post-installation support. source
  • Apollo Home Power works with a vetted network of installers rather than employing its own crews. source
  • The company states the battery will not affect any existing solar tax credits. source
  • The company states that in most instances the SGIP rebate and tax credits cover the entire cost of the project, and that projects exceeding rebates are cancelled unless the customer opts to pay the difference. source
  • Apollo Home Power's batteries use Lithium Iron Phosphate (LiFePO4) chemistry, described as safer, more stable, and non-combustible compared to Lithium Ion.
  • Each battery is 14.3 kWh, so two batteries total 28.6 kWh and three total 42.9 kWh — roughly about three times the size of a Tesla Powerwall.
  • Recommended battery schedules are: for SCE, charge 8:00am–4:00pm and discharge 4:00pm–9:00pm; for SDG&E, charge 12:00am–6:00am and discharge 4:00pm–9:00pm.
  • For customers with pre-existing solar, settings are configured to maximize savings during solar exposure, charging off-peak and discharging on-peak.
  • SGIP requires a Time-of-Use rate — TOU-D 5-8 or TOU-D Prime — and the SGIP department handles the rate switch.
  • A tiered ("Domestic") rate charges the same rate all day and increases past the baseline allowance, while a Time-of-Use rate has peak and off-peak pricing depending on the time of day.
  • NEM 1.0 and 2.0 offer 1:1 credit exchange, while NEM 3.0 / Solar Billing Plan / NBT returns only about 15% instead of 1:1; high bills blamed on batteries are often caused by being on the NEM 3.0 rate.
  • Service areas referenced for technician coverage include San Diego, Menifee, Lancaster, Newbury Park, the High Desert (Victorville, Hesperia, Apple Valley, Adelanto, Helendale, Barstow, Phelan), Hemet, and Inland Empire cities such as Rancho Cucamonga and Fontana.
  • Apollo Home Power explains that batteries charge from the grid during cheap off-peak hours overnight and discharge during the expensive 4pm–9pm peak window, which is where the savings come from.
  • Exact time-of-use charge and discharge windows differ by utility (SCE vs SDG&E) and have not been confirmed, so specific windows should not be stated as certain.
  • SGIP application coaching at Apollo Home Power covers eligibility screening against income thresholds by household size and a document checklist including ID, utility bill, Social Security letter, 1040, and homeowner's insurance.
  • Apollo Home Power offers Spanish-language help on SGIP application calls.
  • Apollo Home Power handles the battery system only, not solar panels or the customer's electric bill; solar and billing questions are directed to the solar company.
  • Apollo Home Power can only connect a battery directly to a solar system if the customer owns the solar outright and provides ownership documentation; connecting a leased or financed solar system would void the solar and battery warranties.
  • Without a direct solar connection, the battery charges off-peak from the grid during the same daytime hours solar produces, so the two work in parallel.
  • For high-bill concerns, Apollo Home Power asks for bills from the same months before and after install so the technical team can compare usage against charges and explain what is driving the bill.
  • Apollo Home Power batteries provide backup during outages but do not export power to the grid; standby is the normal idle state between charge and discharge windows.
  • Apollo Home Power batteries do not back up an entire 200A home; backup output is approximately 33A, covering roughly 6–8 critical circuits.
  • Apollo Home Power's batteries are LiFePO4 chemistry and 14.3 kWh each.