PG&E ’s "buy back" system—officially known as —allows you to receive a payment if your solar system generates more electricity than you use over a 12-month period. Core Compensation Structure
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
This is roughly $0.02 to $0.04 per kWh , based on wholesale market prices. PG&E ’s "buy back" system—officially known as —allows
If you applied before April 14, 2023, you are "grandfathered" into 1:1 retail credits for 20 years. You receive a credit worth the full retail rate (roughly $0.30–$0.45 per kWh) for energy you send to the grid. This typically averages $0
These offset your current bill. If you produce 100 kWh extra this month, it creates a credit that covers 100 kWh of future use.
Under the current Solar Billing Plan, the "buy back" rates are low enough that most experts recommend adding a battery to store power for your own use at night rather than selling it back to the grid for pennies. If you'd like to dive deeper, tell me:
Your solar system's financial value depends on which regulatory "tier" you fall under, primarily determined by your application date: