Buying or Selling an El Dorado Hills Home with Solar: NEM 3.0 Explained

By Jon & Shannon Yoffie, Yoffie Real Estate Group · Updated September 29, 2026

Solar panels are common on El Dorado Hills homes, but the value of a solar system now depends heavily on which PG&E program it is on. Here is what buyers and sellers need to know about NEM 2.0, NEM 3.0 and the Solar Billing Plan.

NEM 2.0 vs. NEM 3.0 in Plain English

• NEM 1.0 and NEM 2.0 (older systems): systems whose complete interconnection application was submitted before April 14, 2023 stay on their original net energy metering program for 20 years from their original interconnection. Exported power earns generous credits.
• NEM 3.0, now called the Solar Billing Plan or Net Billing Tariff: systems that applied after April 14, 2023 are on this program. Credits for power sent to the grid vary by time of day, day of week and season, and are generally much lower than under NEM 2.0, especially at midday when solar production peaks.
• When the 20 years are up: PG&E moves legacy customers to the Solar Billing Plan at their annual true-up.

Does NEM 2.0 Transfer When a Home Sells?

Yes. PG&E states that the 20-year NEM legacy rules are tied to the system, not the owner. If the seller has been on NEM for 15 of the 20 years, the buyer inherits the remaining five. That makes an older NEM 2.0 system a real, but time-limited, selling point.

For Buyers: Questions to Ask About a Solar Home

• Owned, leased or financed? Owned systems transfer with the home. Leases and PPAs must be assumed or paid off, and loans or PACE liens may need to be paid at closing.
• Which program is it on, and when did it start? Ask for the permission-to-operate date and a recent PG&E true-up statement to see how many legacy years remain.
• System age and warranties: check the age of the panels and inverter, and whether warranties transfer.
• Battery storage: under the Solar Billing Plan, a battery lets you store daytime solar and use it in the evening when power is most expensive.
• Roof condition: panels may need to be removed and reinstalled if the roof needs work soon.

For Sellers: Getting Full Value for Your Solar

• Gather your PG&E permission-to-operate letter, true-up statements, warranties and ownership documents before listing.
• If you are on NEM 2.0, show buyers how many years remain and what it has saved you.
• If your system is leased, contact the solar company early; transfers can take weeks.

Details for your home depend on your system and PG&E account. See PG&E's Solar Billing Plan page for the official rules. Also see our guides to property taxes and Mello-Roos and homes with a pool.

Frequently Asked Questions

Does NEM 2.0 transfer to the buyer when a house sells?

Yes. PG&E states the 20-year NEM legacy rules are tied to the system, not the owner, so the buyer inherits the remaining years.

What is the difference between NEM 2.0 and NEM 3.0?

Systems that applied before April 14, 2023 keep their original net metering for 20 years. Newer systems are on PG&E's Solar Billing Plan, where export credits vary by time of day and are generally much lower.

Is a leased solar system a problem when buying a home?

Not necessarily, but the lease or power purchase agreement must be assumed or paid off, so start the transfer early.

Should I add a battery under NEM 3.0?

Under the Solar Billing Plan, a battery lets you store daytime solar and use it in the evening when power is most expensive, which often improves the value of the system.