Maximizing Value in the Age of NEM 3.0
If you’re a California homeowner exploring solar, you’ve probably come across the term Time-of-Use (TOU) rates. And if you already have solar, you may be wondering why your electric bill doesn’t reflect the savings you expected.
That’s because under California’s new Net Energy Metering 3.0 (NEM 3.0) program, when you use power matters just as much as how much you use.
Let’s break down what TOU rates are, how they impact your solar savings, and how to take full advantage of your solar system under this rate structure.
🕒 What Are TOU Rates?
Under TOU billing, electricity prices vary depending on the time of day and season.
- Peak hours (typically 4–9 PM): Highest rates
- Off-peak hours (morning/late evening): Lower rates
- Super off-peak (overnight, in some plans): Lowest rates
Utilities use this structure to encourage less power usage during periods of high demand — like hot summer afternoons when air conditioners are blasting across the state.
🔄 How Does TOU Affect Solar Customers?
Under NEM 3.0, solar customers no longer receive full retail credit for the extra energy they export to the grid. Instead, you’re credited based on the “avoided cost” of electricity — often just 20–30% of what you pay when buying power.
This means:
- If your system exports energy at noon, you might get $0.05–$0.08 per kWh
- But if you draw energy from the grid at 6 PM, you could be charged $0.45–$0.60 per kWh
The result? Maximizing self-consumption (using your solar power at home when it’s produced) and minimizing grid usage during peak hours is key to saving money.
🔋 The Solution: Pair Solar with Battery Storage
One of the best ways to beat TOU rates is to add a home battery, like the Tesla Powerwall or Enphase IQ Battery. Here’s why:
- Your solar panels charge your battery during the day
- Your battery then powers your home in the evening
- This lets you avoid high utility rates during peak times
In effect, your battery lets you time-shift your energy — using cheap or free solar power during expensive utility hours.
🏡 Real-World Example
Let’s say you use 10 kWh of energy between 4–9 PM:
| Without Battery | With Battery |
| 10 kWh x $0.50 = $5.00 | 10 kWh x $0.00 = $0.00 |
Now imagine that savings happening every night — that’s up to $150/month or more, depending on usage.
📱 Bonus Tips to Maximize TOU Savings
- Run appliances (washer, dryer, dishwasher) before 4 PM
- Set your EV to charge after 9 PM or midday with excess solar
- Use a smart thermostat to pre-cool your home before peak hours
- Monitor and control usage with your inverter or battery app (like Enphase or Tesla)
🔧 Aicon Solar Designs for TOU from Day One
At Aicon Solar, we engineer every system with TOU in mind:
✅ Solar + battery options tailored to your peak usage
✅ Smart inverter systems for load shifting
✅ Monitoring tools to help you stay in control
✅ ROI-focused designs — not just pretty proposals
💬 Ready to Beat TOU Rates?
Let us show you how a properly designed system can cut your bill, keep your home running during blackouts, and protect you from rising rates.
📞 Call us today for a free consultation
📩 Or request your personalized solar savings estimate