PG&E · NEM 2.0 · Grandfathering
PG&E NEM 2.0:
What You Have and How to Keep It
If your solar system was interconnected before April 15, 2023, you're on NEM 2.0 — and that's valuable. Here's what your grandfathered status means, how long it lasts, and the smartest moves to make while you have it.
What NEM 2.0 Means for Your Bills
Under NEM 2.0, every kilowatt-hour your solar system exports to the PG&E grid earns you a credit at approximately the retail rate — roughly $0.08–$0.10/kWh. When you use power from the grid (evenings, cloudy days), you draw down those credits. At your annual true-up, PG&E settles the net balance.
This near-retail export credit is what makes NEM 2.0 so valuable. Under NEM 3.0 (the current program for new solar customers), export credits are approximately $0.03/kWh — about a 65% reduction. A NEM 2.0 customer with a well-sized system can achieve a $20–$50/month PG&E bill with solar alone. A NEM 3.0 customer typically needs battery storage to achieve the same result.
NEM 2.0 Advantages
- Export credits at ~$0.08–$0.10/kWh (near retail)
- Solar-only system can achieve near-zero bills
- Grandfathered for 20 years from interconnection
- Status transfers to new owner when home is sold
- Battery adds to savings without losing NEM 2.0
What to Watch Out For
- Adding solar capacity triggers NEM 3.0 — don't upsize panels
- Grandfathering ends 20 years after interconnection date
- PCIA fee still applies and reduces (but does not eliminate) savings
- True-up can be high if usage increased since installation
- Rate plan choice still matters — E-TOU-C often beats E-1
How Long Does NEM 2.0 Last?
NEM 2.0 grandfathering runs for 20 years from your interconnection date — the date PG&E officially approved your system and placed you on the NEM tariff. This date appears on your PG&E interconnection approval letter and on your PG&E account.
| Interconnection Year | NEM 2.0 Expires | Years Remaining (from 2026) | Priority Action |
|---|---|---|---|
| 2015 or earlier | 2035 or earlier | ~9 years | Add battery now — maximize remaining NEM 2.0 value |
| 2016–2018 | 2036–2038 | 10–12 years | Add battery; review rate plan for E-TOU-C optimization |
| 2019–2021 | 2039–2041 | 13–15 years | Strong position — add battery to amplify savings |
| 2022–April 2023 | 2042–2043 | 16–17 years | Excellent position — most valuable NEM 2.0 cohort |
The Best Moves for NEM 2.0 Customers Right Now
NEM 2.0 FAQ
How long does NEM 2.0 grandfathering last?
NEM 2.0 customers are grandfathered for 20 years from their interconnection date — the date PG&E approved their system and they were placed on the NEM tariff. If you interconnected in 2020, your NEM 2.0 status runs through 2040. After that, you'll transition to whatever net metering program is in effect at the time.
If I add more solar panels, do I lose my NEM 2.0 status?
Yes — adding solar capacity (more panels or a new inverter with higher output) triggers a new interconnection application, which puts you on NEM 3.0. However, adding battery storage alone does not affect your NEM 2.0 status. This is an important distinction: you can add a Powerwall or Enphase IQ Battery to your existing NEM 2.0 system without losing your grandfathered rate.
What is the best rate plan for NEM 2.0 customers?
For NEM 2.0 customers without battery storage, E-1 (tiered) or E-TOU-C both work well. E-TOU-C rewards shifting loads to midday when your solar is producing. For NEM 2.0 customers with battery storage, E-TOU-C is typically best — the battery can arbitrage the peak/off-peak spread while your solar earns near-retail export credits.
Should I add a battery to my NEM 2.0 system?
Yes — adding battery storage to a NEM 2.0 system is one of the best investments available right now. You keep your valuable NEM 2.0 export credits while also gaining peak-shifting capability, PSPS outage protection, and the ability to switch to E-TOU-C for additional savings. Battery prices have dropped significantly, and the combination of NEM 2.0 credits + battery arbitrage produces strong returns.
What happens to my NEM 2.0 true-up bill?
NEM 2.0 customers receive an annual true-up statement from PG&E that settles the net of all energy exported and imported over the year. If you exported more than you imported (at near-retail credit rates), you may receive a credit or a very small bill. If your system underperformed or your usage increased, you'll owe the difference. See our True-Up Bill Guide for strategies to minimize your true-up.
Can I transfer my NEM 2.0 status if I sell my home?
Yes. NEM 2.0 status transfers with the home when it's sold. The new owner assumes the remaining grandfathering period. This is a significant selling point — a home with a NEM 2.0 solar system is more valuable than the same home with a NEM 3.0 system, because the new owner inherits the higher export credits.
Add battery storage to your NEM 2.0 system
We install Tesla Powerwall, Enphase IQ Battery, and Franklin aPower on existing NEM 2.0 systems throughout the Central Valley — without affecting your grandfathered status.