Home solar in California: net metering rules, utilities and a free consultation

The rules

How solar is credited in California

Cal. Pub. Util. Code section 2827.1; CPUC Decision D.22-12-056

What the law and the utilities say

For homes served by PG&E, SCE and SDG&E, rooftop solar customers who applied for interconnection on or after April 15, 2023 take service on the Net Billing Tariff adopted by the California Public Utilities Commission in December 2022, often called NEM 3.0.
Under that tariff, power sent to the grid is credited on the bill at values from the CPUC Avoided Cost Calculator, which are usually lower than the price of power drawn from the grid, and customers are billed monthly with an annual true up in which credits roll over for 12 months.
Customers must take service on a specific time of use rate, and a system is generally sized to the home's annual electric load.
City and district owned utilities such as LADWP and SMUD are outside this tariff and set their own solar crediting rules.

The state rule

Net Billing Tariff, successor to net energy metering, Cal. Pub. Util. Code section 2827.1; CPUC Decision D.22-12-056

Recent changes

A November 2023 CPUC decision created a virtual net billing tariff and an aggregation option under the Net Billing Tariff. SMUD, which sets its own rules, raised its solar export compensation rate effective June 1, 2026.

Federal tax credit

The residential solar credit (section 25D) ended for systems completed after 2025. Confirm your own situation with a tax professional.

Utilities

The main electric utilities in California

Your utility decides how your solar is credited. Check the name on your electric bill.

Pacific Gas and Electric (PG&E)investor owned. Northern and central California.

Southern California Edison (SCE)investor owned. Central, coastal and Southern California, excluding the City of Los Angeles.

San Diego Gas & Electric (SDG&E)investor owned. San Diego County and southern Orange County.

LADWPmunicipal. City of Los Angeles.

SMUDmunicipal. Sacramento County.

Questions

Common questions in California

Does the Net Billing Tariff apply to every California homeowner?

No. The CPUC Net Billing Tariff covers new solar customers of PG&E, SCE and SDG&E. Municipal utilities such as LADWP and SMUD run their own programs.

What happens to homeowners who went solar under the older NEM 2.0 tariff?

According to the CPUC, NEM 2.0 customers may stay on that tariff for 20 years from the date they interconnected, or they may switch to the current tariff.

How long does a new customer keep Net Billing Tariff terms?

According to the CPUC, the original customer whose system is interconnected under the Net Billing Tariff can keep that tariff for nine years.

Is there still a federal tax credit for home solar?

The federal residential clean energy credit, section 25D, ended for home solar expenditures made after December 31, 2025, under the law signed July 4, 2025. The IRS treats the expenditure as made when installation is completed, so a system completed in 2026 does not qualify even if it was paid for earlier.

Does the consultation cost anything?

No. The consultation is free for homeowners, and there is no obligation to buy anything.

Who will contact me?

Our team confirms a few details with you, then one local solar company for your area contacts you to set up the visit. Your request never goes to a list.

Sources (checked September 26, 2026)

Rules and programs change, so confirm current terms with your utility before you decide.

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Solar in California: what homeowners need to know

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