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Solar With Battery Backup in California: A Plain-English Guide (NEM 3.0)

By Kelley Electrical Contracting, LLC. Published October 16, 2026. Educational information, not a substitute for an on-site inspection.

Short answer: Under California's net billing rules (often called NEM 3.0), solar exports earn much less than retail rates, so storing solar power in a battery for evening use and outages has become more valuable. Backup can cover a few critical circuits or the whole home.

What changed with NEM 3.0

California's net billing tariff, often called NEM 3.0, applies to most new solar customers whose applications were submitted after April 14, 2023. Excess solar sent to the grid earns a lower credit than the electricity costs you to buy at night, which is why many new systems include a battery.

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What a battery does

A battery stores solar power produced during the day so you can use it in the evening, and provides backup power when the grid goes down. Brands such as Tesla Powerwall and Enphase batteries are commonly installed with solar.

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Partial vs whole-home backup

Partial backup powers selected circuits through a backup loads panel, such as the refrigerator, lights, internet and some outlets. Whole-home backup powers the entire house but needs more battery capacity and, with large loads like air conditioning, careful sizing.

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Questions to ask before you buy

Is my existing solar system compatible with the battery? How many kilowatt-hours and how many kilowatts do I need? Which loads will run during an outage? Will my panel need an upgrade? Who pulls the permit and handles utility approval? A licensed electrician can answer these for your home.

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Adding a battery to existing solar

Many homes with existing solar can add storage. The details depend on your inverter and panel, which is why a site evaluation comes first.

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Frequently asked questions

Do I need a battery with solar in California?

No, but under net billing a battery often improves the economics and adds backup power.

How long will a battery run my house?

It depends on battery size and what you run. Air conditioning and electric heat use a lot, while essentials like lights and a refrigerator use little.

Do incentives apply?

Incentive programs change. Ask your installer and check current federal, state and utility programs before you decide.

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Sources and further reading

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