If you’re considering solar panels in California, you’ve probably heard a lot about recent policy changes—especially NEM 3.0—and wondered: Is solar still worth it? While the rules have changed, the answer remains a strong yes for most homeowners.
Understanding NEM 3.0 and Its Impact
The biggest ever change in California’s solar market came in 2023 when Net Energy Metering (NEM) 3.0, was implemented. The new California net metering policy significantly lowered the value of solar energy sent back to the grid. Under NEM 2.0, homeowners were credited at or near retail rates for excess solar energy. Now, with NEM 3.0, export rates have dropped significantly—meaning selling electricity back to the grid won’t save you as much money as before.
So, does that mean solar is a bad investment? Not at all. It just means the strategy has shifted.
How to Save More with Solar Under NEM 3.0
To get the most out of a home solar installation in California in 2025, you should focus on self-consumption—using as much of your solar power as possible instead of sending it back to the grid. Here’s how:
Install a Solar Battery
You will almost certainly get more out of your investment in a California solar panel installation if you also install a battery. Solar batteries let you store the excess electricity your solar panels generate so you can keep it for yourself instead of selling it to the grid at a reduced rate. This will help you save more with solar power and can even speed up your solar payback period in CA.
But that’s not the only benefit of solar battery storage. You can also use a battery for backup power during an outage. With the number of wildfires and grid outages we’ve been seeing lately, reliable backup power and the peace of mind it provides are more important than ever.
Optimize Your Energy Usage
Almost all utility companies in California require solar customers to be on a time-of-use (TOU) plan. On a TOU plan, your electricity rate changes depending on the time of day and year. When electricity demand is high, typically in the evenings, your rate goes up. In the middle of the day, when demand is lower, it goes down. You can avoid overpaying for power by strategically running high-consumption appliances like an EV charger, dishwasher, or washer/dryer during off-peak periods to save on energy costs.
If you don’t want to worry about optimizing your usage, a battery is the best solution. With a battery, you can simply use stored solar energy during on-peak hours.
What Are the Benefits of California Solar in 2025?
Even with lower net metering rates, solar is worth it in California in 2025. Solar panels offer significant long-term financial advantages in addition to many other benefits.
Lower Electricity Bills
By generating your own electricity, you save money on your electric bills and avoid ever-rising rates.
Tax Credits & Incentives
The federal solar tax credit allows you to deduct 30% of your system’s cost from your taxes. California offers additional rebates for solar installation, especially for battery storage. We can help you find out which California solar incentives you’re eligible for—schedule a free assessment to get started!
Home Value Boost
Studies show that homes with solar panels sell for more. Even better, your property taxes won’t go up if your home value increases. California offers a property tax exclusion for solar panels. But it expires after 2026—if you don’t want to miss out on this incentive, schedule your installation soon!
Backup Power
Solar with battery storage provides backup power for your home in case of a planned or unexpected power outage.
Reduced Carbon Emissions
With solar panels for your home in California, you will reduce your impact on the environment and contribute to decarbonization efforts.
Is Solar Right for Your Home?
Solar is a great option for most California homeowners, but it’s important to consider:
- Your Energy Usage – Homes with high electricity needs benefit the most from solar. If you use a lot of power for air conditioning, have a heat pump, or drive an EV, solar makes sense for the electric bill savings alone.
- Your Roof’s Sun Exposure – South- or west-facing roofs with minimal shading will generate the most power. However, we can install solar panels on most roofs and will find the optimal positioning to maximize your output.
- Your Utility Rate – If you live in an area with high electricity prices, your savings potential is even greater. Considering we have some of the highest electricity prices in the country, solar panels are worth it for most California homes and businesses.
Does Solar Work in Northern California?
Installing solar panels in sunny, southern California is a no-brainer, but what about up here on the North Coast? Does the fact that we get less sun and more fog mean you shouldn’t invest in solar energy for your Humboldt or Del Norte County home or business?
Around these parts, solar works just as well as it does in the south because the average temperature in Northern California is optimal for solar panel functionality. What’s more, modern solar panels are able to harness solar power in foggy weather, as all they need to function is ultraviolet light. Solar output is typically reduced by only 50% when there’s heavy cloud cover and even less with coastal fog.
The Future of Solar in California
While NEM 3.0 has changed the solar landscape, it hasn’t eliminated the benefits of going solar in California. In fact, with battery storage, smart energy management, and incentives like the solar tax credit, solar panels remain one of the best ways to cut energy costs and gain energy independence.
If you’re thinking about installing solar panels for your home, now is the time to act. Incentives won’t last forever, and the sooner you install, the sooner you’ll start saving!
