Net Tariff Billing: How Businesses Can Win Under the New Net Tariff Billing on Renewable Energy System


In today’s world, the need for renewable energy has become more important than ever. With the constant increase in energy costs, businesses owners are looking for ways to reduce their energy bills while still contributing to a sustainable future. One such way is through Net Metering (NEM), a program offered by utility companies, that allowed businesses owners with renewable energy systems to sell surplus energy back to the grid at the same rate the utility was charging during that time. However, starting April 15th, 2023, the CPUC will transition to Net Tariff Billing (NTB).

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What is Net Tariff Billing (NTB)?

NTB reimburses business owners for surplus energy at wholesale rates which are 70% less than those offered under NEM, thereby extending the ROI period.

The Negative Impact of Net Tariff Billing:

While this program may seem like a win-win situation, it can have a negative impact on businesses owners with renewable energy systems designed to offset 100% of annual energy consumed (Net Zero). This is because the utilities are now purchasing surplus energy from the business owners at the same cost it takes to produce per kWh ($.04/kWh) and they bill them up to 10 times higher for energy needed during the hours of 4PM to 9PM when solar panels are typically not producing energy.

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The Solution: Solar Plus Battery Storage

This is where solar plus energy storage comes in as a solution. By combining solar panels with an energy storage system, businesses owners can store excess energy produced by their solar system for later use rather than selling it back to the grid. This not only maximizes the return on investment but also provides a reliable source of energy during power outages while shaving peak demand over the course of the billing month.

How does Motive Energy help you meet the terms of the NTB?

As a provider of solar and battery storage solutions, Motive Energy has helped large commercial and industrial facilities meet their energy needs and reduce their grid reliance to fully capitalize on the benefits of solar plus battery storage. Our solutions intelligently capture the data from PV generation, facility usage from the grid, and battery levels. This allows those utilizing our solutions to have an Artificial Intelligence (AI) based software make decisions for when and how much to import and export from the utility. The Energy Management System (EMS) will add value to existing solar projects as well as new projects utilizing Motive’s proprietary software.

Solar Plus Energy Storage

Here are some questions to ask when searching for an Energy Plus Storage Solution for your business.


  • How does the energy storage meet our electricity needs?
  • How does energy storage work if I already have an existing solar system?
  • Does the system proposed have smart building energy management?
  • What are the benefits of using energy storage with Net Tariff Billing?
  • How does solar plus energy storage handle peak demand and load shedding?
  • How can I calculate the potential savings from using energy storage with NTB?
  • What are the warranties and guarantees on the equipment and installation?
  • Are there any energy storage tax incentives or rebates available for energy storage systems?
  • What are the best energy storage solutions for off-grid or remote areas?
  • How can I find a reputable installer or contractor for energy storage systems?