These offset your current bill. If you produce 100 kWh extra this month, it creates a credit that covers 100 kWh of future use.
This will help me provide a more tailored ROI analysis for your specific situation. Understand Net Surplus Compensation
Systems applied for after April 14, 2023, use "avoided cost" rates. Instead of retail value, you are paid what it would cost PG&E to buy that power elsewhere. This typically averages $0.04 to $0.09 per kWh during the day—a drop of about 75% compared to NEM 2.0. How Buy Back Payments Work pg&e solar power buy back
Your solar system's financial value depends on which regulatory "tier" you fall under, primarily determined by your application date:
Starting in March 2026, most residential solar customers will see a fixed Base Services Charge of approximately $24/month , which replaces the previous minimum charge. These offset your current bill
Regardless of your plan, there are two distinct types of "credit":
This is roughly $0.02 to $0.04 per kWh , based on wholesale market prices. How Buy Back Payments Work Your solar system's
To encourage early adoption of NEM 3.0, customers who sign up before April 2028 receive an extra "adder" on top of their export rates for 9 years. In 2026, this is 0.88¢/kWh for standard customers and 3.6¢/kWh for low-income (CARE/FERA) participants.