Energy Support

Net Billing Tariff

The Net Billing Tariff (NBT), in effect since April 15, 2023, increases the value of battery storage for your home. To maximize your savings, Tesla will pair solar systems with Powerwall for all California customers who will be under the NBT.

What is Net Billing Tariff (NBT)?

The Net Billing Tariff (NBT), sometimes referred to as NEM 3.0, is the California solar billing policy that went into effect on April 15, 2023 (although billing on NBT generally does not start until December 2023 or later) which applies to all new solar systems installed in these utility territories:

  • Pacific Gas & Electric (PG&E)
  • Southern California Edison (SCE)
  • San Diego Gas & Electric (SDG&E)

Under the previous Net Energy Metering (NEM) programs, customers received utility credits for solar energy exported to the grid and deducted those utility credits when importing electricity from the grid. The export credit value from solar was based on the import price, creating a nearly 1:1 exchange; utilities bought energy from customers for approximately the same price that they sold it.

The Net Billing Tariff (NBT) is a new set of policies that dictate how California customers can earn credits for energy exports. Under the NBT, export credits are now valued at the avoided cost to the utility, similar to the wholesale cost of a large power plant. Credits are typically around $0.05 per kWh for most of the year but spike up to $2.87 per kWh when electricity demand is high during September evenings.

What are the impacts of these changes?

NBT significantly increases the value of batteries for two main reasons:

  1. Using more solar allows customers to save more: Adding Powerwall allows you to store solar energy and use it later, instead of exporting it to the grid for minimal credit. A solar-only system will reduce the median customer’s electricity bill by 57%; with Powerwall, the bill will go down by 92%.*
  2. Earn more during “Power Hours": Powerwall’s intelligent, customizable software allows you to take advantage of the “Power Hours” in September when credits are 75x higher than the lowest export prices during the month.

What is Tesla’s Solution to the NBT?

Solar bundled with Powerwall provides the best value under the NBT. Despite the increased initial cost, including Powerwall with your solar system results in a significant increase in bill savings when compared to a solar-only system.  Over 10 years, a 7kW + 1 Powerwall solar system has a net savings of $14,999 - greater than a 7kW solar only system with a net savings of $8,859 despite the higher upfront cost.*

Maximize your lifetime savings while adding backup protection with Powerwall. View our white paper to learn more about the Net Billing Tariff.

*Based on Tesla’s analysis on fleet data

How do I know which policy my system was installed under?

If you purchased your solar & Powerwall system directly from Tesla, find your interconnection agreement by tapping on ’Documents’ from the Tesla app. The interconnection agreement should show either a NEM 2.0 agreement or a NBT agreement.

If you bought your solar & Powerwall system from a Tesla Certified Installer:

  • ​​​​​​​Look for your interconnection application on your records. The utility likely emailed it as an attachment. The application should show either a NEM 2.0 application or a NBT application.
  • Contact your Certified Installer.

How will Powerwall operate if I have a Net Billing plan?

Most of the time, Powerwall will try to limit having your home consume power from the grid; it will prioritize supplying your home during peak and partial peak times to help you save more on your utility bill.

If Powerwall predicts that your solar system won't produce enough energy to meet your home energy needs during a high-cost time (peak period), it may decide to hold back some energy during a low-cost time (off-peak period) in order to power your home when energy is expensive.

During the late summer afternoons, when energy exports prices are high, Powerwall may export as much energy as it can to the grid to help you save even more on your utility bill. Your Powerwall must be enabled to export power to the grid to earn these extra savings.

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