Net metering in California (2026)

California uses partial / net billingexported energy is credited at less than the full retail rate, so solar still pays off but maximizing self-consumption — and often adding a battery — improves the return.

Regime
Partial / net billing
Electricity rate
31.4¢/kWh

What it means for your solar payback

How your utility values exported energy is one of the biggest levers on solar economics. In California, with partial / net billing, exported energy is credited at less than the full retail rate, so solar still pays off but maximizing self-consumption — and often adding a battery — improves the return. Combined with the local rate of 31.4¢/kWh, this shapes your payback — see the exact numbers on the California solar cost page.

State incentives

Beyond net metering, California: NEM 3.0 net billing; SGIP storage rebates. Note that the 30% federal tax credit ended for purchases on December 31, 2025 — though a lease or PPA can still pass a 30% credit through. More in our incentives guide.

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Net metering in California: FAQ

Does California have net metering in 2026?
California uses partial / net billing: exported energy is credited at less than the full retail rate, so solar still pays off but maximizing self-consumption — and often adding a battery — improves the return. Statewide, NEM 3.0 net billing; SGIP storage rebates.
How does net metering affect my solar savings in California?
It sets the value of the surplus power your panels send to the grid. With partial / net billing in California, it pays to use more of your solar directly, and a battery can boost the return. See the full economics on our California cost page.
Is net metering going away in California?
Rules change at the state and utility level, and several states have shifted from full retail to net billing with lower export rates. Always confirm your specific utility's current policy before you buy.