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

Net metering rules changed in California. If you are thinking about solar, you need to understand what this means for your savings.

What is net metering?

Net metering lets you send excess solar power back to the grid and receive credit on your electricity bill. When your panels produce more than you use during the day, those credits offset what you pay at night.

The NEM 3.0 shift

California moved from NEM 2.0 to NEM 3.0 in April 2023. The export rate dropped significantly. Under NEM 2.0, you received retail-rate credits for excess power. Under NEM 3.0, the export credit is based on wholesale rates, which are much lower.

This means self-consumption matters more than ever. You want to use as much of your solar power during the day as possible rather than sending it to the grid.

How this affects your solar decision

Solar is still worth it in California. But the math has changed.

Systems with battery storage now make more financial sense. A battery stores excess daytime power for use at evening peak hours when electricity rates are highest.

Larger systems may not be as valuable as before. If you produce too much excess power, you get paid very little for it.

What you need to know before installing

1. Get a roof analysis first. Know exactly how much power your roof can produce. Under NEM 3.0, sizing matters more than ever.

2. Consider battery storage. If you can add a battery, your system becomes more valuable because you use your own power instead of exporting it.

3. Check your utility. SCE, PG&E, and SDG&E all have slightly different NEM 3.0 implementations. Your savings depend on which utility serves you.

Get data before you decide

SolrScan gives you an instant satellite roof analysis for $19. Know your roof's production potential before you talk to an installer. That way you can size your system correctly under the new rules.

Get your solar roof analysis at solrscan.com

Bottom line

Net metering changes make solar more complex but not less valuable. Get the right data first. Size your system correctly. Consider battery storage. Then you will save.