Solar and batteries in Orange County

What changed on April 15, 2023

Systems that apply to connect to Southern California Edison (SCE), Pacific Gas and Electric (PG&E) or San Diego Gas & Electric (SDG&E) since that date go on the Net Billing Tariff, often called NEM 3.0 (net energy metering). SCE calls it the Solar Billing Plan. Solar you use yourself still offsets power you would buy. The change is in what you get for the rest:

• Exports are credited at their hourly value to the grid. The CPUC says that is usually lower than the retail rate, but can rise above it on late summer evenings.
• A set time-of-use rate. At SCE it is TOU-D-PRIME.
• Nine years locked. The original customer keeps the tariff for nine years. SCE and PG&E customers who apply before the end of 2027 also get slightly higher export credits for those nine years; SDG&E customers do not.
• Monthly bills. Charges are due each month, and extra credits roll forward to a yearly true-up.

A system already on the older NEM 2.0 tariff can stay on it for 20 years from the date it was connected.

Why batteries matter more now

SCE's prices are highest on summer weekdays from 4 to 9 p.m., as the sun goes down. A battery stores daytime solar to use or export in those hours, and the CPUC names that as the way to get the most bill savings under the tariff. Some solar and battery installs also need a bigger electrical panel; see our panel upgrade guide.

Anaheim and south county

Anaheim Public Utilities, the city's own electric utility, says it is not going to NEM 3.0. New Anaheim systems go on its NEM 2.0 program, which credits exported power at a wholesale-based rate on its rate sheet. A grandfathered NEM 1.0 customer who adds panels moves the whole system to NEM 2.0. Anaheim issues permits for systems under 10 kW without plan review, and you can turn the system on once the city signs off the permit; the utility does not issue a separate permission to operate.

SDG&E, not SCE, serves parts of southern Orange County. Check the name on your bill.

Permits: the automated route

Government Code section 65850.52, added by SB 379, requires cities over 5,000 people to offer an online, automated permit for home solar up to 38.4 kW and a battery paired with it, issued in real time to a licensed contractor. Cities over 50,000 had until September 30, 2023; smaller ones until September 30, 2024. Systems the platform cannot check go through regular review.

Huntington Beach and Fountain Valley use SolarAPP+, and both still inspect the finished work. Irvine issues same-day solar and battery permits online for a system with no more than one battery. Fountain Valley's plan checklist asks for fire access pathways on the roof and the roof covering, so if the roof is near the end of its life, see our roof replacement guide first: reroofing later means taking the panels off.

What an HOA (homeowners association) can and cannot do

California Civil Code section 714 voids HOA rules that effectively prohibit solar. For a solar electric system, a reasonable restriction can add no more than $1,000 to the cost or cut efficiency by no more than 10 percent. Our HOA and coastal remodel guide covers the written decision and the 45-day deadline.

The federal tax credit in 2026

The Residential Clean Energy Credit covered 30 percent of the cost of solar installed from 2022 through 2025, and batteries of at least 3 kWh from 2023. The IRS says it is not available for property placed in service after December 31, 2025. If a 2026 quote still subtracts it, ask the installer to explain in writing.

For comparing bids and deposits, see reading a contractor's quote and California's deposit rules.

As of September 2026. Your utility and your city have the current rules. This is general information, not financial, tax or legal advice.