Definition
Net Billing Tariff (NBT) is the formal name for California's NEM 3.0, effective April 15, 2023. Solar exports compensated at hourly avoided-cost rates instead of retail; imports billed at retail TOU. Shifts residential solar economics toward storage.
Key Takeaways
- NBT = California’s Net Billing Tariff (NEM 3.0).
- Solar exports at avoided-cost rates ($0.05–0.08/kWh average).
- Imports at retail TOU rates.
- Storage critical for restoring residential paybacks.
- See NEM 3.0 for full design implications.
Frequently Asked Questions
3 commonly searched questions about NBT (Net Billing Tariff).
What is NBT?
Net Billing Tariff — California's solar export compensation policy, popularly called NEM 3.0. Effective April 15, 2023 for new PG&E, SCE, SDG&E customers.
How is NBT calculated?
Solar exports × hourly Avoided Cost Calculator (ACC) rate. Imports × retail TOU rate. Net monthly billed/credited.
Why NBT vs. retail net metering?
California regulator (CPUC) determined that retail-rate compensation over-credited solar customers at the expense of non-solar ratepayers. NBT reflects the wholesale value of solar by time of day.
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