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CALIFORNIA BILLING • NEM 1 • NEM 2 • NET BILLING (NBT)

Net Metering vs Net Billing (Solar Billing Plan)

California billing rules changed the solar strategy. For most new interconnection applications filed on or after April 15, 2023, service is under the CPUC’s Net Billing Tariff (NBT), also called the Solar Billing Plan by the IOUs.

Storage (BESS) Time-of-Use (TOU) Solar 101 CCL#914346

1) The key idea: imports are expensive, exports are often cheap

Under NBT, the value of exported energy is generally based on avoided-cost concepts and varies by hour. That’s why the modern best strategy is: use your solar, store your solar, and export less.

Official reference:

CPUC overview (includes an NEM vs NBT comparison table): CPUC Net Energy Metering and Net Billing

2) NEM 1, NEM 2, and NBT (Solar Billing Plan) — simplified

Program Concept Practical impact
NEM 1.0 Retail-style crediting for exports (legacy terms vary). Solar alone often penciled well; storage optional for many.
NEM 2.0 TOU rates + non-bypassable charges and other adjustments. Solar still strong; storage increasingly valuable as TOU spreads.
NBT / Solar Billing Plan Export credits vary by hour and reflect “grid value” concepts. Storage becomes central: self-consumption + peak shifting drives payback.

Most new interconnection applications filed on/after April 15, 2023 fall under NBT (per CPUC guidance).

3) Why batteries matter under Net Billing

Without a battery
  • Midday exports can be credited low
  • Evening imports can be expensive
  • Your savings depend heavily on daytime self-use
With a battery
  • Capture midday solar and use it later
  • Reduce imports during peak TOU hours
  • Keep a reserve for outages

If you want the “battery-first” explanation in full: Storage (BESS) and TOU strategy.

4) Export credits are “hourly” — what that means

Under the Solar Billing Plan, export credits are typically calculated using your exported kWh by hour multiplied by an export credit rate for that hour. Utilities publish program explainers and export pricing pages. Examples:

ABC Solar practical translation:

We design your system so the “good energy” happens when it matters: you use solar directly and the battery covers your peak window. That reduces your dependence on export credits.

5) The fastest way to know what you’re on

Your utility bill, interconnection paperwork, and true-up documents will usually identify whether you are on a legacy NEM tariff or the Solar Billing Plan / NBT. If you’re unsure, send us a recent bill (PDF screenshot is fine) and we’ll tell you what matters for design.

Call

1-310-373-3169

Email

[email protected]