Using solar energy has always been a smart move in California. For years, solar homeowners have enjoyed significant savings on their energy bills thanks to net metering policies. But with PG&E’s new Net Billing Tariff (NBT) in California, things are changing—big time.
Under PG&E solar billing changes, selling extra solar power back to the grid isn’t nearly as profitable as it used to be. Those interested in maintaining high power bill savings need a new strategy: a solar battery for load shifting.
By storing extra solar energy during the day and using it when PG&E’s Time of Use solar rates are at their highest, you can dramatically reduce or eliminate the expensive electricity you purchase. In other words, adding a battery helps you maximize solar self-consumption and take control of your electricity costs.
At Allterra Solar, we’re here to help you navigate these net energy metering changes and find the best solution for your home. As a locally-owned solar company based in Santa Cruz, we understand how to maximize your PG&E savings. Get a free savings estimate today to see how much you could save with a battery!
Understanding the Net Billing Tariff in California
Understanding California’s Net Billing Tariff is critical for maximizing your PG&E bill savings on the Central Coast. This policy, sometimes called Net Energy Metering (NEM) 3.0, replaces the old NEM 2.0 program, and it changes how solar-powered households get credited for the extra energy they send back to the grid.
What Is the California Net Billing Tariff?
NBT is the latest update to the state’s solar billing system, and unfortunately, it’s not as homeowner-friendly as the previous versions if you don’t have a solar battery. Here’s what’s different:
- Instead of receiving nearly full retail credit for the excess solar energy you export, you now get paid at much lower wholesale rates—often just a fraction of what you’d pay to buy that same power from PG&E.
- Households that go solar under the Net Billing Tariff in California need to rethink their energy strategy to get the best return on investment with solar battery load shifting.
Key Impacts in Santa Cruz & Monterey County
If you’re considering installing a solar energy system, here’s what these NBT changes mean for you:
- Lower savings for solar-only systems: Without a battery, if you send excess energy to the grid, you will see much smaller credits on your electricity bills.
- Increased reliance on PG&E’s expensive Time of Use (TOU) rates:Since solar production is highest when electricity is cheapest (midday), households without a battery will need to buy power during expensive evening peak hours.
- A shift toward solar self-consumption: To truly maximize the benefits of solar under the Net Billing Tariff California, you need to store and use your own energy instead of relying on PG&E’s fluctuating electricity rates.
Adding an energy storage battery in California is more critical than ever. A solar battery for load shifting lets you use your energy when it benefits you most—not when PG&E decides.
How PG&E Time of Use Rates Affect Solar Savings
With PG&E’s TOU rates, the cost of electricity isn’t the same throughout the day. Instead, power rates fluctuate based on demand, with the most expensive prices during the evening when California homes typically use the most electricity. For those with solar, understanding this pricing structure is key to maximizing savings and having a higher return on investment.
Understanding PG&E’s TOU Pricing
PG&E’s TOU plans charge different rates depending on when you use electricity:
- Peak rates (4–9 PM): The most expensive electricity prices of the day on both weekdays and weekends.
- Off-peak rates: These power rates are the cheapest and apply anytime except 4–9 PM which is when but occurs when solar production is highest.
This creates a major challenge for those without battery storage if they weren’t grandfathered into older versions of net metering agreements.
The Problem for Solar-Only Homes in Santa Cruz and Monterey
Without a battery for load shifting, most solar energy is sold to PG&E at low rates under the Net Billing Tariff in California, since it’s generated when electricity is cheapest. But in the evening, when rates are highest, there’s little or no solar generation available to offset home energy use. This forces households to buy expensive electricity from the grid, significantly reducing overall savings.
The best way to take advantage of solar power under PG&E’s solar billing changes is to store excess energy for later use. At Allterra Solar, we prioritize solar self-consumption by designing systems that use energy when it’s most valuable, reducing reliance on PG&E’s costly evening rates.
With the Net Billing Tariff in California, getting the most out of solar requires more than just panels on the roof. Since PG&E now pays far less for exported energy, storing and using that power later—when rates are highest—is the best way to maximize savings. That’s where a solar battery for load shifting comes in.
Solar Battery for Load Shifting: The Key to Savings
A battery allows solar energy to be stored during the day and used during expensive PG&E Time of Use solar peak hours (4–9 PM). Instead of sending power back to the grid at low rates and then buying it back at a premium later, a home can rely on stored energy to avoid high PG&E costs. This strategy is especially important in Santa Cruz and Monterey County, where many homes have peak energy use in the evening.
Solar Self-Consumption: Maximizing Every Kilowatt
Without a battery, a solar system produces power when electricity is cheapest and sells it back at PG&E’s reduced rates under NBT. But, with storage, you can save excess energy for personal use instead of exporting it at a loss. This approach, known as solar self-consumption, ensures that the power generated stays valuable and reduces dependence on PG&E’s fluctuating pricing.
For Santa Cruz and Monterey residents, adding a battery isn’t just about energy independence—it’s about keeping solar savings strong under PG&E’s solar billing changes.
At Allterra Solar, we specialize in designing solar energy systems that maximize savings by prioritizing solar self-consumption and load shifting. Our team ensures that every system is optimized to provide the greatest return on investment, helping our customers take full control of their PG&E bills.
The Best Strategy for Homes with NEM 1.0 or 2.0
For homes with NEM 1.0 or 2.0, protecting that agreement is crucial. The Net Billing Tariff in California offers lower export rates, so making any changes that trigger NBT could reduce long-term savings.
Preserving Your Original NEM Agreement
Adding a battery does not affect NEM 1.0 or 2.0 benefits. However, exporting power from a newly installed solar system can switch the entire home to PG&E’s solar billing changes under NBT—eliminating the better rates of NEM.
How to Add a Battery Without Losing NEM Benefits
At Allterra, we recommend storing excess solar energy in a solar battery for load shifting rather than exporting it. Keep the system isolated from the grid to maximize solar self-consumption and avoid triggering NBT.
Maximizing Your Solar Savings with a Battery
The Net Billing Tariff in California has changed how solar works, making battery storage more critical than ever. With PG&E’s solar billing changes, sending excess power to the grid no longer provides the same financial benefits. Instead, storing and using your energy later—when PG&E Time of Use solar rates are highest—is the best way to maximize savings.
A solar battery for load shifting ensures that homes in Santa Cruz and Monterey can keep more of the power they generate, reducing reliance on PG&E and increasing energy independence.
At Allterra Solar, we’ve helped over 4,000 homes take control of their energy with high-quality solar energy and battery systems. We’re a local, community-driven company with a deep understanding of California’s evolving energy landscape. Unlike fly-by-night installers, we’re here for the long run—providing expert guidance, top-tier installation, and ongoing support.
Curious about your potential savings? Get a free solar battery estimate today!
