Net Metering 2026: How California Utility Changes Affect Your Solar Savings

California has been the solar capital of America for over a decade. But the rules around net metering have changed dramatically. If you are researching solar in California in 2026, you need to understand how the new rate structures work.

What changed with NEM 3.0

California shifted from Net Energy Metering 2.0 to NEM 3.0 in April 2023. The change has been rolling out across all three major utilities: SCE, PG&E, and SDG&E.

Under NEM 2.0, you received retail credit for excess solar energy sent back to the grid. That credit was essentially dollar-for-dollar against your electricity costs.

Under NEM 3.0, the export credit is based on the wholesale value of that energy. This is significantly lower than retail rates. The credit varies by hour and season.

What this means for your solar ROI

Solar systems in California still save money. But the savings come from self-consumption, not from exporting excess energy to the grid.

This makes battery storage much more valuable. A battery lets you store excess solar production during the day and use it during peak evening hours when electricity rates are highest.

Key changes by utility

SCE (Southern California Edison): Export rates range from 8 to 25 cents per kWh depending on the hour. Peak export rates occur during late afternoon.

PG&E: Similar export rate structure with time-of-use variations. Peak export rates typically occur 4pm to 9pm.

SDG&E: Slightly higher export rates on average due to higher wholesale prices in the San Diego market.

You need to know if your roof qualifies first

Before you invest time getting quotes and navigating the new rate structures, you need to know if your roof can actually support a solar system.

SolrScan gives you a satellite-powered roof analysis in seconds. $19. No account. No sales call.

The report shows:

• Usable roof area for panels
• Seasonal shade analysis
• Estimated panel count
• PDF you can share with installers

Get your report at solrscan.com

Know your roof qualifies before you chase savings.