NEM 3.0 and Solar in Fallbrook, California: What Changed?

What Is NEM 3.0 and How Does It Affect Fallbrook?

California's Net Energy Metering 3.0 (NEM 3.0) took effect April 15, 2023 for all new solar installations under San Diego Gas & Electric. It replaced NEM 2.0, which paid near-retail rates for every kWh exported to the grid. Under NEM 3.0, export credits dropped to roughly ~$0.10/kWh.

Why Solar Still Makes Sense in Fallbrook Under NEM 3.0

Even with lower export credits, Fallbrook homeowners on San Diego Gas & Electric can still save $3,444/year because:

• ✓Self-consumption savings are huge: Every kWh you use directly from your panels avoids buying from San Diego Gas & Electric at 57.0¢/kWh — that's the Tier 2 rate where most Fallbrook homes operate.
• ✓Battery storage shifts the math: A home battery (e.g., Tesla Powerwall, Enphase IQ) stores excess midday solar for evening use — when you would otherwise buy from the grid at peak rates.
• ✓Rate protection still applies: San Diego Gas & Electric rates have risen 89% (2014-2024). Solar production locks in a large portion of your usage at zero cost per kWh, regardless of future rate changes.
• ✓Size for your usage, not for export: Under NEM 3.0, the optimal strategy is a system sized to cover your daytime load — not to maximize export. Your installer should right-size based on your 12-month usage history.

NEM 3.0 Strategy for Fallbrook Homeowners