California’s new Net Billing Tariff (NBT), or NEM 3.0, is the successor tariff to NEM 2.0. NEM3.0 incentivizes customers to move from the installation of solaronly systems to solar + battery systems. This evolution of residential solar systems from NEM 2.0 to NEM 3.0 was motivated by the need to match energy supply and demand in the grid through the creation of a marketdriven tariff structure.

Enphase has developed a comprehensive solution that can improve homeowner ROI under the NEM 3.0 tariff mechanism. In Section 3, we will show that adding a small gridtied battery to a solar system can significantly improve the homeowner’s electric bill offset from 55% for solar only systems to 70%–90%, while delivering a payback period of about 5 to 7 years. We will also show that this solution is very easy to design, install and commission.

Homeowners will still have a choice to opt for a larger solar and battery system that improves payback under NEM 3.0 as well as provide backup power when the grid fails.

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