TL;DR: Yes, solar panels work without a battery in California, but NEM 3.0 changed the math. In 2026 SCE credits midday exports at about 6 cents per kWh in summer and 3 cents in winter, while evening power on TOU-D-4-9PM costs 50 to 59 cents. In our worked example, an 8 kW solar-only system saves about $1,515 a year with a 16-year payback. Adding a battery raises savings to about $3,185.
Key takeaways
- Grid-tied solar runs fine without a battery. It just shuts off in an outage.
- Under NEM 3.0, a kWh you use yourself is worth 32 to 33 cents. A kWh you export midday earns 3 to 6 cents.
- In our example, the home uses only 30% of its solar directly. That share drives the whole decision.
- Solar-only still makes sense with heavy daytime load, a tight budget, or a plan to add storage later.
- The battery in our example pays for itself in about 6.6 to 10.5 years.
Under NEM 2.0, the grid was a free battery. You sent power out at noon and pulled it back at 7pm at nearly the same price. That deal closed for new SCE, PG&E and SDG&E customers in April 2023. The grid still takes your solar, but it now pays a fraction of what it charges you back. That gap is the whole question. Here is how big it is with real 2026 SCE numbers, and when going without a battery is still the smart call. (For the policy background, see NEM 2.0 vs NEM 3.0.)
Can you have solar panels without a battery?
Yes. Most U.S. rooftop systems still have no battery: Berkeley Lab’s 2026 distributed solar data update found storage on 37% of new residential systems in 2025, up from 25% in 2024. Roughly 63% went in without one.
A battery-free system is called grid-tied:
- Panels make DC power whenever the sun is up.
- The inverter converts it to AC and feeds your electrical panel.
- Your home uses solar first. Whatever is running at that moment draws from the roof.
- Surplus flows to the grid through your meter and earns an export credit.
- At night, you buy from the utility like any other customer.
No charge controller or battery bank is involved. Those belong to off-grid systems, which do need batteries because there is no grid to fall back on. Can you use a solar panel directly without a battery? Only for a DC device wired straight to the panel, like a fan or pump, and it stops when a cloud passes. For a whole home, grid-tied is the battery-free option.
Is solar without a battery worth it in California under NEM 3.0?
It can be, but payback is slower than it used to be. In our example below, an 8 kW solar-only system on SCE saves about $1,515 a year and pays back in about 16 years at $3.00 per watt. The same home with a battery saves about $3,185 a year and pays back in about 11 to 13 years.
The reason is the Net Billing Tariff, the CPUC’s official name for NEM 3.0. It applies to interconnection applications filed on or after April 15, 2023 (Decision D.22-12-056, implemented by Resolution E-5301). Export credits follow the CPUC’s Avoided Cost Calculator, and each customer’s export prices lock for 9 years based on the year they start. The Court of Appeal upheld the tariff in March 2026, so these are the rules to plan around.
Two more 2026 facts:
- No federal homeowner credit. The 25D credit ended for systems installed after December 31, 2025. Every price here is the full cash price. Leases and PPAs follow different rules.
- SGIP battery rebates are mostly closed or waitlisted in SCE and PG&E territory, as we cover in what a home battery costs.
How much do you lose by exporting instead of storing?
About 27 to 29 cents on every midday kWh. SCE’s 2026 export values average 6 cents per kWh from 6am to 4pm in summer and 3 cents in winter, while buying that kWh back on SCE’s TOU-D-4-9PM plan costs 32 to 59 cents.
SCE export credit vs TOU-D-4-9PM import price, 2026
| Season and window | Export credit (2026) | Import price, TOU-D-4-9PM | Gap per kWh |
|---|---|---|---|
| Summer, 6am to 4pm | 6c | 33c (off-peak) | 27c |
| Summer, 4pm to 9pm | 21c | 59c weekdays, 44c weekends | 23c to 38c |
| Summer, 9pm to 6am | 12c | 33c (off-peak) | 21c |
| Winter, 6am to 4pm | 3c | 32c (super off-peak 8am to 4pm) | 29c |
| Winter, 4pm to 9pm | 10c | 50c (mid-peak) | 40c |
| Winter, 9pm to 6am | 10c | 36c (off-peak) | 26c |
Source: SCE Solar Billing Plan, average 2026 Energy Export Credit values; SCE Time-of-Use rate plans, standard rates before the baseline credit. Summer is June to September, winter October to May.
Takeaway: solar exported at noon earns 6 cents, and power bought back at 6pm costs up to 59 cents, about 10 times as much.
The timing hurts. Panels produce most between 9am and 3pm, exactly when export credits are lowest. A battery does one job: it moves that 6 cent noon kWh into the 59 cent evening window.
Worked example: 8 kW, SCE TOU-D-4-9PM, 750 kWh a month
Every assumption is listed so you can swap in your own.
| Input | Value used | Basis |
|---|---|---|
| Rate plan | SCE TOU-D-4-9PM, standard rates, no baseline credit | sce.com rate table |
| Usage | 750 kWh a month, flat all year (9,000 kWh) | Scenario |
| Summer month by time | 340 kWh 6am to 4pm, 230 kWh 4pm to 9pm, 180 kWh overnight | Family out by day, AC in the evening |
| Winter month by time | 280 kWh 6am to 4pm, 250 kWh 4pm to 9pm, 220 kWh overnight | Lighting and heat shift load later |
| Summer 4pm to 9pm price | 55c (59c x 5/7 + 44c x 2/7 = 54.7c, rounded) | Weekends are mid-peak |
| Production | 1,500 kWh per kW per year, 12,000 kWh total | Conservative for a good SCE roof; check yours in NREL’s PVWatts |
| Production by season | 1,150 kWh per summer month, 925 per winter month | 4 x 1,150 + 8 x 925 = 12,000 |
| Self-consumption, solar only | 30% (3,600 kWh a year) | Solar covers the 6am to 4pm load only |
| Export value | 6c summer, 3c winter, all exports | SCE 2026 6am to 4pm values |
| Base Services Charge | $0.79 a day, $288.35 a year | sce.com; billed with or without solar |
| System price | $3.00/W cash, $24,000 | Berkeley Lab 2025 national cash median |
Valuing every export at the midday rate and ignoring late-afternoon solar that trims evening load makes this slightly conservative.
Step 1: bill before solar. Summer month: 340 x 33c + 230 x 55c + 180 x 33c = $112.20 + $126.50 + $59.40 = $298.10. Winter month: 280 x 32c + 250 x 50c + 220 x 36c = $89.60 + $125.00 + $79.20 = $293.80. Year: 4 x $298.10 + 8 x $293.80 + $288.35 = $3,831.15.
Step 2: production split. Summer: 340 kWh used, 1,150 minus 340 = 810 kWh exported per month. Winter: 280 used, 645 exported. Year: 3,600 kWh used (30%), 8,400 exported (70%).
Step 3: export credits. 3,240 summer kWh x 6c = $194.40. 5,160 winter kWh x 3c = $154.80. Total $349.20, about 4.2 cents per exported kWh.
Step 4: bill with solar only. Evening and overnight imports: 4 x ($126.50 + $59.40) + 8 x ($125.00 + $79.20) = $743.60 + $1,633.60 = $2,377.20. Minus $349.20 credits, plus $288.35 = $2,316.35.
Step 5: savings and payback. $3,831.15 minus $2,316.35 = $1,514.80 a year. $24,000 / $1,514.80 = 15.8 years.
The panels make 133% of what the home uses, yet the bill falls only 40%. That is NEM 3.0 in one sentence. Without a battery, we usually size to your daytime load instead of your annual total. Our guide to SCE time-of-use rates explains how each plan prices the evening hours.
Solar-only vs solar plus battery: the numbers
For the same home, a 13.5 kWh battery roughly doubles annual savings, from $1,515 to $3,185, and cuts total payback from 15.8 years to about 11 to 13 years.
Battery assumptions: 13.5 kWh usable (the 2025 median residential battery, per Berkeley Lab), 20% backup reserve, so 10.8 kWh delivered a day (324 kWh a month), 90% round-trip efficiency. It covers the whole 4pm to 9pm load, then part of overnight: 94 kWh in summer, 74 in winter. Recharging takes 324 / 0.9 = 360 kWh of solar a month that would otherwise be exported.
- Exports fall to 450 kWh a summer month and 285 a winter month: 1,800 x 6c + 2,280 x 3c = $108.00 + $68.40 = $176.40.
- Imports are overnight only: 86 kWh x 33c x 4 + 146 kWh x 36c x 8 = $113.52 + $420.48 = $534.00.
- Bill: $534.00 minus $176.40 plus $288.35 = $645.95. Savings: $3,831.15 minus $645.95 = $3,185.20.
Solar-only vs solar + battery, same SCE home on TOU-D-4-9PM
| Solar only, 8 kW | Solar + 13.5 kWh battery | |
|---|---|---|
| Upfront cash cost | $24,000 | $35,000 to $41,500 |
| Solar used on site | 30% (3,600 kWh) | 66% (7,920 kWh incl. battery charging) |
| Exported per year | 8,400 kWh | 4,080 kWh |
| Annual bill | $2,316 | $646 |
| Year-1 savings | $1,515 | $3,185 |
| Simple payback | 15.8 years | 11.0 to 13.0 years |
| Outage backup | None | Yes |
Sources: rates and export values from sce.com; solar price from Berkeley Lab’s 2026 data update ($3.00/W cash median); battery $11,000 to $17,500 installed, from our California battery cost guide. Year 1, no rate increases or degradation.
The battery’s own contribution is $3,185.20 minus $1,514.80 = $1,670.40 a year. At $11,000 to $17,500 installed, that is a 6.6 to 10.5 year payback on the battery alone. Cross-check: Berkeley Lab’s 2025 medians were $5.10/W for paired systems against $3.00/W for solar alone (cash), a $2.10/W premium, or $16,800 on 8 kW. That sits inside our range.
Left out of both columns: SCE’s Energy Export Bonus Credit, about 4 cents per kWh (about 9 cents income-qualified) for customers who enroll before 2028. At 4 cents it adds about $336 a year to solar-only and $163 to the battery system. It narrows the gap. It does not close it.
When does a home solar system without a battery still make sense?
When you can use half or more of your solar during daylight, or when an extra $11,000 to $17,500 would strain the budget. We tell homeowners to skip the battery, for now, in five cases:
- Someone is home all day. Remote work, retirees, home businesses. Daytime AC and appliances use solar at 32 to 33 cents of value instead of exporting it at 3 to 6.
- You can move big loads to midday. Shift EV charging or a pool pump from overnight to 10am to 2pm. In our example, moving 150 kWh a month saves 27c a kWh in summer and 33c in winter: 600 x 27c + 1,200 x 33c = $162 + $396 = $558 a year. Solar-only savings rise to $2,073 and payback drops to 11.6 years, close to the battery case.
- Your evening load is small. A battery has little 50 to 59 cent power to replace.
- The budget is tight. Solar-only still cut this bill 40%. A system sized to daytime load can pay back faster than an oversized one.
- You plan to add storage later. Install battery-ready now and add the battery when prices or incentives improve.
When not to skip it: long evening AC runs, an EV you can only charge at night, frequent Public Safety Power Shutoffs, or a need for backup. Batteries do not always pay off, though. A home with a small, mostly daytime load can end up with one it rarely cycles.
Can you add a battery later?
Yes. Most modern string and microinverter systems accept an AC-coupled battery, such as a Tesla Powerwall 3 or Enphase IQ Battery, without touching the panels. Budget the same $11,000 to $17,500 installed for one battery, more if the main panel needs an upgrade.
To keep that option cheap:
- Ask for a battery-ready design: wall space near the main panel and a clear conduit path.
- Check main panel capacity now. Upgrading once beats upgrading twice.
- Choose an inverter with a storage path. Some older inverters cannot talk to a new battery’s controls.
On NEM 2.0 today? Talk to us before changing anything. Modifying a legacy system has its own interconnection rules, and you do not want to lose a grandfathered rate by accident. Our battery storage installation team also retrofits systems we did not install.
Do solar panels work during an outage without a battery?
No. A grid-tied system without a battery shuts off within seconds of a blackout, even at noon. This is anti-islanding: every grid-tied inverter does it by design so your panels cannot energize lines crews are repairing.
To keep power on, you need a battery with backup wiring, or a generator with a transfer switch. A 13.5 kWh battery can carry essentials like the fridge, lights and Wi-Fi for roughly a day depending on load, longer if solar recharges it. See how long a battery powers a home and our guide to solar during a blackout.
Frequently asked questions
Yes. A standard grid-tied inverter needs no battery. It converts panel output to AC for your home and sends surplus to the grid. It does need the grid up, so it shuts down in outages.
No. Grid-tied systems shut off automatically when the grid goes down, as a safety requirement. You need a battery and backup wiring to run your home from solar in a blackout.
Shifting your own loads. Run the EV charger, pool pump and dishwasher, and pre-cool the house, between 10am and 3pm. It costs nothing, and in our example it is worth about $558 a year. True storage, a single battery, runs $11,000 to $17,500 installed in California in 2026.
It is not a CPUC or utility rule. People use it two ways: sizing panels up to about 133% of the inverter’s AC rating, and the rough idea that a solar-only home uses about a third of its production directly. Our worked example lands at 30%.
Often, if you are on NEM 3.0 and use most of your power in the evening. In our SCE example the battery adds about $1,670 a year and pays for itself in 6.6 to 10.5 years. On NEM 2.0 the case is weaker unless you want backup power.
See both numbers for your own roof
The honest answer depends on your roof, your rate plan and when your household uses power. We run every quote both ways, solar only and solar plus battery, so you see both paybacks before you decide. Get a quote with and without a battery in 2 minutes, or book a virtual consultation and we will walk through your SCE bill line by line. We install across Southern California, including solar in Los Angeles County.