Thinking about solar in Del Mar and hearing mixed messages after NEM 3.0? You want lower bills, reliable backup, and a clear path that will not waste time or money. In a few minutes, you will understand what changed with SDG&E’s Solar Billing Plan, why batteries matter, which incentives to check, and how to permit and interconnect locally. Let’s dive in.
NEM 3.0 basics for Del Mar
Under California’s Net Billing Tariff, often called NEM 3.0, you no longer get full retail credit for extra solar you send to the grid. Exports are paid at an avoided cost rate set by the state, which is usually much lower than the price you pay to buy power. Get the official overview on the CPUC’s Net Billing Tariff page for full context and dates (CPUC Net Billing Tariff).
If your Del Mar home’s solar was interconnected under NEM 2.0, you typically keep those terms for up to 20 years from the original interconnection date. New applications submitted on or after April 15, 2023 fall under NEM 3.0 rules (NEM timeline and grandfathering context).
What this means for your SDG&E bill
- Export credits are usually low at midday and can be higher during late afternoon or evening peaks. This pattern makes it smarter to use or store your solar instead of exporting it when the sun is strongest (export value pattern explained).
- Under Net Billing, your account settles monthly, not annually, and simple daytime credits no longer offset higher evening costs one for one (CPUC billing mechanics).
- Del Mar is in SDG&E territory. Some homes are served by a community choice aggregator for generation. Your supplier can affect certain price components, so check your plan details (SDG&E NEM and pricing plan info).
Why pair solar with a battery now
NEM 3.0 reduced the value of daytime exports, so a battery can raise your savings by shifting solar to higher value hours. Storing power and using it during peak time-of-use windows cuts expensive purchases and can improve the overall payback compared with solar alone. Independent modeling and industry analyses show this shift in value under Net Billing (economic impact overview).
Beyond savings, a battery gives you resilience during outages and planned shutoffs. The right setup can keep essential loads running while your neighbors wait for the power to return.
Incentives that can lower costs
- Federal Residential Clean Energy Credit: Many residential solar and battery projects placed in service through 2025 have been eligible for a 30 percent credit. Federal law changed in 2025, so availability for expenditures after December 31, 2025 is different. Battery storage must be at least 3 kWh to qualify. Always confirm eligibility and timing with a tax professional (IRS credit guidance and IRS 2025 update).
- California SGIP battery rebates: SGIP offers strong incentives for batteries, with higher levels for equity and resiliency categories. A new residential solar plus storage equity budget launched in 2025 for eligible households. Check current rules, budgets, and reservations for SDG&E customers (CPUC SGIP program).
- Local programs: SDG&E’s Solar Billing Plan page highlights financing and resources that can help with project planning and costs. Availability can change, so verify before you commit (SDG&E Solar Billing Plan).
Permitting and interconnection in Del Mar
- City permits: The City of Del Mar Building Services manages building and electrical permits, plan checks, and inspections. Use the eTRAKiT portal and confirm whether your project requires a standard plan review or qualifies for any streamlined process (Del Mar Building Services).
- Interconnection: SDG&E approvals are required before energizing a system. Applications go through SDG&E’s Distribution Interconnection Information System and include technical checklists and fast-track criteria. You need Permission to Operate before you flip the switch (SDG&E interconnection center).
- Safety standards: Battery placements must meet California Building and Fire Code. Your installer will submit equipment cut sheets, layout details, and any required signage to the authority having jurisdiction.
Buying or selling a Del Mar home with solar
If the home’s solar was interconnected under NEM 2.0, those terms usually stay with the system for the remaining grandfathered period. Ask for the utility Permission to Operate letter and the original interconnection date to confirm status (NEM 2.0 grandfathering context).
For sellers, gather permits, inspection records, interconnection approvals, warranties, and any SGIP documents. Clear documentation helps buyers understand operating costs under SDG&E’s current rules.
For buyers, review the home’s utility plan, any community choice enrollment, and the presence and size of the battery. If you plan to add storage after closing, confirm incentive timing and federal eligibility with your tax professional before you budget.
Your next steps
- Confirm your utility setup, including SDG&E service and any community choice enrollment that affects rates (SDG&E NEM and pricing plan info).
- Check whether a prior, complete application secured NEM 2.0. If not, plan under NEM 3.0 rules (how grandfathering worked).
- Get a site-specific quote that models solar production, your load profile, SDG&E time-of-use billing, and battery dispatch. Ask the installer to show payback under different battery sizes.
- Line up permitting and inspections with Del Mar Building Services and coordinate utility interconnection with your contractor (Del Mar Building Services).
- Verify incentive timing. Review SGIP reservation options and confirm federal credit eligibility and dates with a tax advisor (IRS credit guidance and CPUC SGIP program).
Ready to align your solar and battery plans with your next move in Del Mar? For calm, clear guidance that connects the dots between energy upgrades and real estate goals, reach out to William Arant.
FAQs
How does NEM 3.0 change Del Mar solar savings?
- Under SDG&E’s Net Billing, midday export credits are usually lower than your retail rates, monthly settlement applies, and shifting solar to peak hours with a battery often improves savings.
Do existing Del Mar solar owners keep NEM 2.0 terms?
- If your interconnection was completed under NEM 2.0, you typically keep those terms for up to 20 years from the original interconnection date; confirm your status with SDG&E.
Is a battery worth it under SDG&E’s Solar Billing Plan?
- For many homes, yes, because a battery stores daytime solar and covers higher priced evening use, which can improve payback and provide backup during outages.
What incentives can help pay for a battery in California?
- Review the federal Residential Clean Energy Credit rules and timing with a tax professional, and check SGIP battery rebates, especially equity and resiliency categories.
How do you permit and interconnect in Del Mar?
- Apply for building and electrical permits with Del Mar Building Services, complete inspections, then secure SDG&E Permission to Operate through its interconnection process before energizing.
