Claire WhitakerBy Claire Whitaker

Updated November 2026

Net metering in California is ending for most new rooftop solar customers, and the old one-for-one credit on your bill is being replaced. This guide explains what changed, how the newer net billing system calculates your credit, and what steps you can take to protect your savings. If you are planning a home solar system or already own one, the timing of your interconnection application matters a great deal.

What Changed With Net Metering in California

Under the original net metering program, a solar system exported extra electricity to the grid and received a credit at the full retail rate. That credit could offset your bill at night or on cloudy days. The California Public Utilities Commission (CPUC) replaced this with a system called net billing, which pays a lower export rate for the power you send back to the grid. Your home still uses grid power when the sun is down, but the credits you earn during the day are worth less than they were.

Utilities and the CPUC set the rules, and they can change over time. Confirm the current status with your utility before making any decisions, since transition dates and eligibility have been adjusted in past years.

How Net Billing Affects Your Solar Credit

Net billing values the electricity you export at a rate tied to the time of day, rather than the retail rate you pay for power. Midday exports, when solar production is highest, usually receive the lowest value. Evening usage, when you draw from the grid at peak rates, is the most expensive. This timing gap is why a system sized only to cover your annual total can leave you with a bigger bill than expected.

Steps to Take If You Are Planning Solar

  1. Pull your last 12 months of utility bills and note your total kilowatt-hour usage and your peak-hour usage.
  2. Ask your installer for a production estimate that shows hourly output, not just an annual total.
  3. Compare the export rate under net billing with the retail rate you pay in the evening.
  4. Consider a battery to store midday power for evening use, and get a quote showing how it changes your bill.
  5. Size the system around your daytime and evening load so you avoid paying for exports you will not get full value for.
  6. Submit your interconnection application as early as your installer and utility allow, since rules depend on the date your system is approved.
  7. Keep copies of every application, approval letter and utility correspondence for your records.

Common Mistakes to Avoid

  • Assuming the old credit rate still applies to a system you have not yet had approved.
  • Oversizing a system to chase a zero bill, which often wastes money under net billing.
  • Ignoring time-of-use rates and looking only at annual kilowatt-hour totals.
  • Accepting a quote that does not show how the new export rate was calculated.
  • Waiting until a deadline is close before contacting your utility about your application.

For a broader overview of how the program works, read Net Metering in California: How It Works and What Homeowners Need to Know. If you want to compare the two systems directly, see Net Energy Metering in California vs Net Billing: Which Should You Choose?. Homeowners who are still weighing options may also find Is Net Metering Going Away in California (2026): Which Should You Choose? useful, and Southern California Edison Net Metering: Step-by-Step Guide for Homeowners covers the process for SCE customers specifically.

A basic home energy monitor helps you track hourly solar production and usage, which is the data you need to judge net billing values. View on Amazon

A whole-home energy monitor with circuit-level tracking can show which appliances run during expensive evening hours, so you can shift loads. View on Amazon

FAQ

Can I still get net metering in California if I apply now?

Eligibility for the older net metering terms depends on your application date and utility rules, and the cutoff has been adjusted over time. Ask your utility to confirm which program applies to your specific system before you sign a contract.

Does net billing mean my solar system is not worth it?

Not necessarily. A well-sized system, possibly paired with storage, can still lower your bill, but the payback period is usually longer than under the old credit structure.

Who should I contact about my application?

Your local utility handles interconnection and export credits, and a licensed solar installer can help prepare the paperwork. For tax or financial questions, consult a qualified professional.

Conclusion

California has moved from full retail net metering to net billing, which changes how daytime solar exports are valued. Homeowners who plan carefully, sizing their system around hourly usage and considering storage, are in the best position. Check your utility’s current rules before committing to any installation.

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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.