Claire WhitakerBy Claire Whitaker

Updated November 2026

The CPUC net metering decision changed how California utilities credit rooftop solar customers for the electricity they send back to the grid. If you have panels, this shifts how much your exports are worth and how you should size or time future systems. This guide explains what the decision does, how to check your own situation, and what steps to take now.

What the CPUC Net Metering Decision Changed

The California Public Utilities Commission moved most residential customers off the older one-to-one credit system and onto a structure where exported power is valued at time-varying rates. Under the earlier arrangement, a kilowatt-hour sent to the grid offset a kilowatt-hour drawn later, often at the full retail rate. Under the newer rules, exports are credited based on when they occur, so midday power from your panels is typically worth less than evening power you pull from the grid.

Shopping for one? See our guide: Net Metering in Virginia vs Virginia Community Solar: Which Should You Choose?.

The practical effect is that the same system can produce a very different bill depending on your household’s usage pattern. Homes that consume most of their power during daylight hours tend to be affected less than homes that export heavily at midday and draw at night.

How to Check Your Current Credit Structure

Start by confirming which rate plan and net metering version your account is on. Your utility account page or your monthly statement lists the rate schedule. Look for the terms “NEM 1.0,” “NEM 2.0,” or “NEM 3.0” (sometimes written as NEM 3), since these labels determine how exports are valued.

  1. Log in to your utility account and note the rate schedule name.
  2. Find your interconnection date, which determines which program applied when your system was approved.
  3. Download the last 12 months of interval or usage data if your utility offers it.
  4. Compare your export and import totals by hour to see when most of your solar energy leaves the house.
  5. Estimate how much of your generation is exported versus used on site.

Note that your interconnection date usually matters more than when you read about the decision. Systems approved before the change generally keep their original terms, while newer systems follow the updated structure.

Evaluating How the Change Affects Your Bill

Once you know your rate structure, estimate the impact by separating three numbers: self-consumed solar, exported solar, and grid imports. Self-consumed solar is the most valuable because it avoids buying power at retail. Exports are now credited at a time-based value, so the mix matters.

Household pattern Likely effect
Home during the day, high daytime use Most generation is used on site; smaller change
Out during the day, large midday exports Exports credited at lower time-based values; larger change
Evening-heavy usage with battery storage Storage can shift exports to higher-value hours

If you are considering adding a battery, model it against your export and import profile first. Storage makes the most sense where evening imports are high and midday exports are large.

Next Steps for Current and Future Systems

For existing systems, focus on shifting usage into midday hours where practical. Running dishwashers, laundry, and pool equipment during peak generation reduces exports and the grid draw you would otherwise pay for later. For planned systems, ask installers to model output against the current export structure instead of older payback figures. A system sized mainly to offset consumption, rather than to maximize exports, often fits the new rules better.

Review your options with a licensed installer or your utility’s customer program staff before signing a contract or making a major equipment purchase. Rules and rate values can be updated, so confirm the current terms in writing.

Tips and Common Mistakes

  • Do not assume your neighbor’s savings apply to you; interconnection dates and rate plans differ.
  • Check whether your installer’s savings estimate uses the current export values or older assumptions.
  • Avoid oversizing a system purely for export credits under the new structure.
  • Track your bills for at least two full seasons before judging the actual change.
  • Keep copies of your interconnection agreement and rate schedule confirmation.

FAQ

Does the CPUC net metering decision affect existing solar systems?

It depends mainly on your interconnection date. Systems approved under earlier programs often keep their original terms, while newer systems follow the updated export structure.

How do I find out which net metering version I am on?

Check your utility account or monthly statement for the rate schedule name, which typically references NEM 1.0, 2.0, or 3.0. You can also ask the utility directly with your account number.

Is a battery always worth it after the decision?

Not always. A battery helps most when you have large midday exports and high evening usage, so model your own interval data before deciding.

Conclusion

The CPUC net metering decision mainly changes how exported solar power is valued, so the effect on your bill depends on when you generate, use, and export energy. Start by confirming your rate schedule and interconnection date, then compare your hourly exports and imports. Use that information to decide whether to shift usage, add storage, or size future systems differently.

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Claire Whitaker

About Claire Whitaker

Claire Whitaker is part of our editorial team and reviews and edits our home solar guides, checking product details against manufacturer specifications and owner feedback.