Clear Answers for Your Solar Journey

Is solar still worth it in California under NEM 3.0?

Solar can still be a worthwhile investment in California, but the way homeowners maximize savings has changed. Under the current Net Billing Tariff—often called NEM 3.0 or the Solar Billing Plan—solar energy used immediately in your home offsets electricity purchased at the retail rate. Excess energy sent to the grid usually earns a lower, time-dependent credit.

A well-designed system should therefore focus on your household’s actual electricity use rather than simply producing as much energy as possible. Combining solar with battery storage can improve savings by storing midday production for use during expensive evening hours. Your roof, utility, energy habits, financing terms, and expected time in the home should all be evaluated before estimating your return.

Do I need a battery with solar in California?

A battery is not required for every solar installation, but it can be especially valuable under California’s current billing rules. Instead of exporting excess midday solar at a relatively low credit, a battery lets you save that energy and use it later when electricity prices may be higher.

A battery can also provide backup power during an outage when the system is designed for that purpose. Whether you need one depends on your evening electricity use, rate plan, outage concerns, budget, and desired level of energy independence. We can compare solar-only and solar-plus-storage options to determine which configuration makes the most financial sense.

How much solar do I need for my home?

The right solar-system size depends primarily on how much electricity your household uses throughout the year. Installers also consider your roof’s orientation, available space, shading, local weather, utility rate plan, and how much sunlight the property receives.

Future needs matter as well. If you expect to purchase an electric vehicle, install a heat pump, add a pool, or expand your home, your electricity use may increase. A responsible solar proposal should use recent utility bills and a property-specific production model instead of relying on a generic estimate.

How many batteries do I need?

The number of batteries you need depends on what you want them to accomplish. A smaller system may shift excess solar into the evening, while a larger system may be needed to operate essential appliances—or most of the home—during an extended outage.

Your installer should review your evening consumption, essential circuits, desired backup duration, battery capacity, and the maximum amount of power the battery can deliver at once. For many households, one battery is a starting point, but homes with heavy air-conditioning, multiple EVs, well pumps, or whole-home backup goals may require additional capacity.

What happens to solar during a power outage?

Most grid-connected solar systems automatically shut down during an outage. This safety feature prevents electricity from flowing onto utility lines while crews may be repairing them, so solar panels alone generally will not keep your home powered when the grid is down.

To use solar during an outage, you normally need a compatible inverter, battery storage, and properly configured backup equipment. The system can then disconnect safely from the grid and power selected circuits or, if appropriately sized, much of the home. Backup duration will depend on available sunlight, battery capacity, and how much electricity you use.

Can solar charge my electric vehicle?

Yes. Solar panels can generate electricity that helps power your home and charge your EV. Charging during sunny daytime hours often allows more solar energy to be used directly instead of being exported to the utility.

The system should be designed around both your household use and expected driving. Your annual mileage, vehicle efficiency, charging schedule, charger size, and utility rate plan can all affect the recommendation. A battery or smart EV charger may also help coordinate charging with solar production and lower-cost periods.

Should I buy, finance, lease, or use a PPA?

Buying with cash generally provides the simplest ownership structure and may produce the lowest lifetime cost, but it requires a larger upfront payment. A loan allows you to own the equipment with less money upfront, although interest and dealer fees can substantially affect the total cost.

With a lease, you pay a fixed amount to use equipment owned by another company. Under a power purchase agreement, or PPA, you purchase the electricity the system generates, usually at a stated price per kilowatt-hour. Leases and PPAs may reduce upfront costs, but homeowners should carefully review escalators, contract length, maintenance obligations, home-sale provisions, and buyout terms before signing.

How long does solar installation take?

The physical installation of a typical residential solar system may take only a few days. However, the complete process usually takes longer because it includes the site assessment, system design, financing, permits, equipment scheduling, inspections, and utility interconnection approval.

Timelines vary by city, utility, project complexity, and whether roof or electrical work is required. Weather, permitting corrections, equipment availability, and utility processing can also create delays. Your installer should provide a project schedule and keep you informed at each major stage.

Do I need to replace my roof before installing solar?

Not necessarily. Before installation, the roof should be inspected for its condition, age, remaining useful life, and ability to support the system. A newer roof in good condition can often receive solar without any additional roofing work.

If the roof is near the end of its life, replacing it first may be more practical than paying to remove and reinstall the panels later. The condition of the underlayment is important for tile roofs, even when the visible tiles appear reusable. Ask who is responsible for roof penetrations, leak protection, and warranty coverage before the project begins.

Do I need to upgrade my electrical panel?

Some homes can accommodate solar and battery storage without a main electrical-panel upgrade. Others may require an upgrade because the existing panel is too small, outdated, damaged, or unable to support the proposed equipment under current electrical rules.

Alternatives may sometimes be available, including load-management equipment, a smaller system, a meter adapter, or a different interconnection design. A qualified professional should inspect the panel and calculate its capacity before making a recommendation. Any required electrical work should be clearly identified and priced in the proposal.

What is the federal solar tax credit?

The Residential Clean Energy Credit previously allowed eligible homeowners to claim 30% of qualified solar and battery expenses for systems placed in service from 2022 through December 31, 2025. Under current federal law, the residential credit is not available for property placed in service after December 31, 2025, according to the IRS.

Customers installing solar in 2026 should not assume that they will receive this former residential credit. Other programs or incentives may still apply depending on the customer, property, technology, and location. Because tax circumstances differ, homeowners should confirm eligibility and timing with a qualified tax professional rather than relying on a salesperson’s estimate.

How do SCE’s electricity rates affect solar savings?

Southern California Edison solar customers generally pay time-of-use rates for electricity drawn from the grid. Under SCE’s Solar Billing Plan, imported electricity can be particularly expensive during higher-demand periods, such as summer weekday evenings from 4–9 p.m. Solar used immediately in the home reduces the need to purchase that electricity.

Credits for exported solar vary according to the hour, day, and season and are often lower during solar-rich midday periods. A battery can store daytime production for evening use or strategically timed export. Actual savings therefore depend not only on how much energy the system generates, but also on when the household consumes and exports it. SCE explains its current Solar Billing Plan here.

How does LADWP solar work?

LADWP operates its own solar and net-metering programs and is not governed by the investor-owned utilities’ Solar Billing Plan in exactly the same way. An approved bidirectional meter tracks electricity delivered to your home and excess solar electricity sent back to LADWP’s grid.

Your bill reflects your applicable LADWP rate and the treatment of energy imported and exported through the meter. Program rules, rates, and available incentives can change, so the system should be evaluated using current LADWP information rather than SCE assumptions. Details are available through LADWP’s Solar/NEM rate information.

What is the difference between NEM 2.0 and California’s current net-billing system?

Under NEM 2.0, eligible customers generally received credits for exported solar energy based on retail electricity rates, although certain charges still applied. Customers who completed the required interconnection application by the applicable deadline generally retained their legacy tariff treatment for the designated period.

California’s current Net Billing Tariff applies to most new PG&E, SCE, and SDG&E solar applications submitted on or after April 15, 2023. Electricity used directly in the home still offsets retail purchases, but exports receive credits based on their value to the grid at that time, which is usually lower than the retail rate. This makes self-consumption, load timing, and battery storage more important when designing a new system. The California Public Utilities Commission provides the current program details.

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