Net metering is a billing system that allows homeowners with solar panels to get credit for the extra electricity their system produces. Think of it like rolling over your unused cell phone minutes, but for solar power. When your panels generate more energy than your home is using, you send the excess to the power grid and earn credits. This simple concept is key to making solar a smart financial decision for California homeowners.

How Net Metering Turns Your Roof Into a Power Plant

Let's use a simple analogy: think of your home's electricity usage like a bank account.

During those long, sunny California days, your solar panels are hard at work, often making more power than you need. Instead of letting that extra energy go to waste, net metering lets you "deposit" it into the local power grid for your neighbors to use.

In return, your utility—whether it's SCE or LADWP—gives you credits on your account. Later that night, or on a cloudy day when your panels aren't producing, you'll need to "withdraw" electricity from the grid. Instead of paying the full retail price, you can use the credits you’ve already banked.

This arrangement ensures you get value for every kilowatt-hour your system produces. It's the core policy that has made solar a wise financial move for millions. In fact, residential net-metered solar capacity in the U.S. has grown to power the equivalent of over 4.7 million homes, showing just how effective it is. You can explore more data on the residential solar market to see the national impact.

The core idea is simple: You are only billed for the "net" difference between the energy you consume from the grid and the energy you contribute back to it.

This system effectively turns your home into a mini power station. You're no longer just a consumer; you're helping create a cleaner, more stable grid while slashing your own monthly bills. Understanding this is the first step toward taking control of your energy future and protecting yourself from unpredictable rate hikes—a major concern for every California homeowner.

Net Metering At a Glance

To make it even clearer, here’s a quick breakdown of the main ideas behind net metering.

At the end of the day, net metering is all about making sure none of your solar energy goes to waste and you get fair value for it.

How Solar Credits Actually Lower Your Utility Bill

So, we've talked about net metering being like a bank. But how does that actually translate into a smaller utility bill? It all comes down to a special meter your utility installs when you go solar.

Unlike your old one-way meter, this new one is a bi-directional meter. It’s smart enough to track two things: the electricity you pull from the grid (like at night) and the excess power your panels send back to the grid.

Your utility, whether it's SCE or LADWP, looks at both numbers. They simply subtract the kilowatt-hours (kWh) you gave them from the kWh you took. That final number—your "net" usage—is what they bill you for.

Turning Summer Sun into Winter Savings

Let's think about this on a yearly scale. Here in Southern California, our long, sunny summer days mean your solar system is probably going to be a powerhouse, making way more electricity than you can use.

All that extra power builds up a nice bank of credits with the utility.

Then winter rolls around. The days are shorter, maybe a bit cloudier, and your solar production naturally dips. But instead of paying the utility's high winter rates, you just draw from the credits you stockpiled all summer. This brilliant cycle smooths out your energy costs throughout the year, so you're not hit with nasty seasonal surprises. It's one of the best ways to reduce electricity bills for good.

By banking credits during peak production months, you create a financial buffer that offsets your energy costs when your panels are less productive, ensuring year-round savings.

A Look at a Hypothetical Bill

Let's make this real. Imagine it's July, and your home uses 800 kWh of electricity. But your panels were cranking out power, producing a total of 1,200 kWh. That extra 400 kWh gets sent to the grid, and you get credits for every last bit of it.

Fast forward to December. Your panels only make 500 kWh because of the shorter days, but your holiday lights and extra time indoors push your usage to 700 kWh. Instead of getting a bill for that 200 kWh difference, your utility just pulls from the credits you banked back in July. Your bill could be reduced to just the small, fixed fees for being connected to the grid.

When you pair these savings with government incentives, the financial picture gets even better. Be sure to look into any available major home energy and solar tax credits that can slash the upfront cost of your system and boost your long-term return on investment.

Ready to see how a complete solar and backup power system can slash your utility bills? Contact RC Generators and Electric today for a personalized home energy assessment in the Los Angeles or Ventura County area.

Navigating California's New Net Metering Rules

If you’re a homeowner in California, understanding net metering means getting up to speed on some big policy changes. The old system, which gave you generous credits for the extra solar energy you sent to the grid, has been replaced. The new framework is called the Net Billing Tariff, but you’ll almost always hear it called NEM 3.0.

This new policy completely changes how your solar savings are calculated. The main difference is simple but has a massive impact: the value of the credits you get for sending power back to the grid is now much lower than the price you pay for electricity you pull from it.

Think of it this way: under the old rules, it was almost a one-for-one swap. A kilowatt-hour sent to the grid was worth about the same as one you bought. Now, you’re basically selling your solar energy to the utility at wholesale prices and buying it back at expensive retail prices. Because of this, just exporting your extra power is no longer the smartest financial move.

The Rise of Self-Consumption

With export credits slashed by about 75% on average compared to the old plan, a new strategy has become the key to saving money: self-consumption.

The idea is simple. You want to use as much of the solar power you generate, right when you’re generating it. Instead of selling your valuable solar energy to the grid for pennies, you use it yourself to run your home, avoiding the utility’s high rates. This makes every kilowatt-hour you produce and use on-site far more valuable than one you send away.

Under NEM 3.0, the smartest financial move is to maximize the amount of solar energy you use directly in your own home, minimizing your reliance on both exporting to and importing from the grid.

This really changes the return on investment for new solar owners. It’s no longer just about how much power your panels can produce, but about how intelligently you can manage that power throughout the day.

How Policy Shapes Technology and Savings

The new rules have changed the game, making energy storage an essential part of a modern solar setup. For years, net metering in California was so good that it let homeowners wipe out up to 100% of their electricity bills, which is a big reason our state became a leader in solar. That policy also pushed the industry to create smarter tech, like advanced monitoring and storage systems designed to maximize self-consumption—something that’s now more critical than ever. You can read more about trends in the growing solar market to see the bigger picture.

The big takeaway from NEM 3.0 is that pairing solar panels with a home battery isn't a luxury anymore. It's the key to unlocking the biggest savings and getting true energy independence. By storing your excess solar power in a battery during the day, you can use that stored energy to power your home at night, completely sidestepping the utility’s high evening rates and those low export credits. This approach puts you back in control of your energy—and your wallet.

Ready to adapt to California's new rules and secure your energy independence? Contact RC Generators and Electric to learn how a solar and battery system can maximize your savings under NEM 3.0.

Why a Home Battery Is Your New Best Friend

With California's new NEM 3.0 rules, the value of sending your extra solar power back to the grid has dropped dramatically. This leaves many homeowners asking a critical question: how do you avoid selling your valuable, clean energy to the utility for pennies on the dollar?

The answer is surprisingly simple: you store it for yourself. A home battery changes the entire equation.

Instead of letting all that excess power your panels generate in the middle of the day flow back to the grid, you use it to charge your own personal energy reserve.

This one strategic shift puts you back in the driver's seat, letting you squeeze every last drop of value out of your solar investment.

Beat the Peak and Maximize Savings

The real magic happens once the sun goes down. As evening rolls in, electricity demand spikes, and utilities start charging their highest rates during these "peak hours." Of course, this is exactly when most of us are at home, cooking dinner, turning on the lights, and watching TV.

With a fully charged home battery, you simply flip the switch. Instead of buying that outrageously expensive grid power during peak times, you use the free solar energy you saved up earlier in the day.

This strategy, known as load shifting, is the key to unlocking major savings under NEM 3.0. It directly targets the most expensive part of your utility bill. A professional whole-home battery backup installation ensures this all happens seamlessly, giving you the biggest financial win.

By storing your midday solar surplus and using it during expensive evening peak hours, a home battery allows you to sidestep the utility's highest rates and make your solar investment far more profitable.

Suddenly, your solar system isn't just an energy producer—it's a smart energy management tool that gives you true independence from the utility's unpredictable pricing.

Uninterrupted Power During Outages

Beyond the day-to-day savings, a home battery delivers something priceless for homeowners in Los Angeles and Ventura counties: energy security. Our area is no stranger to power outages, whether they're caused by fires, storms, or just plain grid strain.

When the grid goes down, a home battery acts as your personal, automatic backup power source.

Your system will instantly switch over to battery power, keeping your lights on, the refrigerator cold, and your essential devices running without a single hiccup. This isn't just about convenience—it's about real peace of mind and safety for your family.

The table below really highlights the advantages of pairing a battery with your solar panels under the new rules.

Solar Only vs Solar and Battery Under NEM 3.0

In short, combining solar with a battery is now the definitive strategy for navigating California's new energy landscape. It delivers both superior savings and the critical reliability every homeowner deserves.

Achieve Total Power Security with a Backup Generator

A solar and battery system is an amazing combination for day-to-day savings and handling those quick power flickers. But what happens during a serious, prolonged blackout? The kind we see from major storms or wildfire prevention shutoffs, where your battery could eventually run dry?

This is where a whole-home standby generator comes in, offering that final, crucial layer of true energy security.

Think of it as the ultimate safety net. Your solar panels and battery system do the heavy lifting every day, maximizing your savings under NEM 3.0. Meanwhile, a Generac generator is quietly standing by, ready to provide reliable, long-term power for any extended emergency.

Your Complete Home Energy Strategy

A modern Generac generator integrates perfectly with your solar and battery setup. When a long outage hits and your home battery is finally depleted, the generator automatically kicks in. It can power your entire home and even recharge your battery, getting it ready for when the sun comes back out.

This three-part system provides a level of peace of mind you just can't get otherwise:

• Solar Panels: Generate free, clean energy all day long.

• A Home Battery: Stores that energy so you can use it during expensive peak hours and for short outages.

• A Standby Generator: Provides indefinite power during multi-day emergencies when the grid is down and there isn't enough sun to top off your battery.

A generator acts as the ultimate insurance policy for your home's power. While solar and batteries manage your daily energy needs, a standby generator guarantees that you will never be left in the dark, no matter what happens to the grid.

Why This Matters in Southern California

For homeowners here in Los Angeles and Ventura County, this isn't a luxury—it's becoming a necessity. Public Safety Power Shutoffs (PSPS), wildfires, and unpredictable grid failures are now a part of life.

Having a complete energy solution ensures your family stays safe and comfortable, with the lights on, the refrigerator running, and any critical medical devices powered. For anyone considering this powerful addition, it's also smart to understand the basics of safely using a backup generator during outages as a first step.

A professional standby generator installation is key to making sure every component works together seamlessly, creating a robust, fully automatic system you never have to think about.

Are you ready to achieve total energy independence and protect your family from any outage? Contact RC Generators and Electric to design a complete solar, battery, and generator solution for your home.

Take Control of Your Home's Energy Future

Getting a handle on California's net metering is the first step toward true energy independence. For homeowners here in Los Angeles and Ventura County, the clearest path forward is combining solar panels, battery storage, and a solid backup generator like those from Generac into one unified system.

This isn't just about navigating the new NEM 3.0 rules to maximize your savings, though it certainly does that. It's about something much bigger: guaranteeing your power stays on, no matter what. When you can generate your own electricity, store it for later, and have a backup for good measure, you've built a complete, self-sufficient home energy solution.

Think about it—you're essentially taking your family off the rollercoaster of unpredictable grid failures and endless rate hikes. You stop being a victim of circumstances and start calling the shots on your own power supply. This strategy delivers more than just lower monthly bills; it brings lasting security and genuine peace of mind.

Stop letting rate hikes and grid instability dictate your family's comfort and budget. A complete solar, battery, and generator system puts the power back in your hands.

Don't wait for the next blackout to start thinking about energy security. Contact the experts at RC Generators and Electric today for a personalized consultation. We’ll walk you through the options and help design a complete home energy system that fits your needs and gives you peace of mind during fires, hurricanes, and any power outage.

Frequently Asked Questions About Net Metering

Even after you get the hang of solar and net metering, a few more specific questions usually pop up. Let's clear up some of the most common ones we hear from California homeowners.

Do I Still Get a Bill from My Utility Company with Net Metering?

Yes, you'll always get a monthly bill from your utility. The big difference is what's on that bill. Instead of a huge usage charge, it will show a breakdown of the energy you pulled from the grid versus the extra power you sent back.

Even in a month where you produce way more power than you use, you'll probably still see some small, fixed charges. These cover things like grid connection fees and taxes. The whole point of a solar and battery system is to wipe out the electricity usage charges, which are the lion's share of your bill.

What Happens to My Solar Credits at the End of the Year?

Most California utilities work on an annual "true-up" schedule. Think of it as settling the tab. At the end of your 12-month billing cycle, the utility reconciles your account, comparing all the energy you used against all the solar power you generated.

If you end the year with a surplus of credits—meaning you generated more power than you consumed—the utility will usually pay you for them. The catch? They pay you at a super low wholesale rate. That's why aiming for a massive credit surplus isn't a great financial strategy anymore.

It's much smarter to size your system to match what you actually use and add a battery to store any excess for yourself. This way, you avoid selling your valuable energy back to the grid for pennies on the dollar.

Can I Go Completely Off-Grid with a Solar and Battery System?

While it’s technically possible to go completely off-grid, it’s rarely practical or affordable for most homes in places like Los Angeles and Ventura County. Staying connected to the grid gives you a reliable backup and is actually a requirement for participating in any net metering program.

A modern, grid-tied solar and battery system gives you the best of all worlds. You get daily savings from solar, energy independence during blackouts from your battery, and the rock-solid stability of the utility grid as a final safety net. Add a whole-home generator to the mix, and you've got a layered approach that delivers true power security.

Ready to take the next step toward energy independence and secure your home against outages? The team at RC Generators and Electric specializes in designing and installing complete home energy solutions, including solar-powered systems, home battery backups, and Generac standby generators. Contact us today for a free consultation!