Does California have net metering?

PG&E, SCE and SDG&E customers who applied on or after April 15, 2023 are on the Net Billing Tariff (often called NEM 3.0): exports earn hourly avoided-cost credits that are far below retail, locked for 9 years. Los Angeles (LADWP) and Sacramento (SMUD) are municipal utilities with their own rules: LADWP still credits exports at retail energy prices, and SMUD pays a flat export rate.

What does LADWP pay for exported solar?

LADWP offsets exported energy at retail under Net Energy Metering Rider (LADWP, municipal; not subject to CPUC NEM 3.0).

What does PG&E pay for exported solar?

Under Solar Billing Plan (Net Billing Tariff, 'NEM 3.0'), PG&E credits exported energy at Hourly avoided-cost credits; we model about 5¢ per kWh (estimate).

California Net Metering: How Utilities Credit Solar (2026)

Q: What does SMUD pay for exported solar?

Under Solar and Storage Rate (SSR, Rate Schedule SSR; SMUD municipal, not subject to CPUC NEM 3.0), SMUD credits exported energy at 9.60¢ per kWh.

California utilities compared

Utility	Export policy	Export credit	Avg. residential price	Monthly basic charge
LADWP	Net Energy Metering Rider (LADWP, municipal; not subject to CPUC NEM 3.0)	Retail rate (net metering)^[1]	23.84¢ per kWh^[2]	n/a
PG&E	Solar Billing Plan (Net Billing Tariff, 'NEM 3.0')	Hourly avoided-cost credits; we model about 5¢ per kWh (estimate)^[3]	39.62¢ per kWh^[2]	$24.00^[4]
SMUD	Solar and Storage Rate (SSR, Rate Schedule SSR; SMUD municipal, not subject to CPUC NEM 3.0)	9.60¢ per kWh^[5]	17.87¢ per kWh^[2]	$27.00^[6]
SDG&E	Solar Billing Plan (Net Billing Tariff, 'NEM 3.0')	Hourly avoided-cost credits; we model about 5¢ per kWh (estimate)^[7]	43.63¢ per kWh^[2]	$24.00^[8]
SCE	Solar Billing Plan (Net Billing Tariff, 'NEM 3.0')	Hourly avoided-cost credits; we model about 5¢ per kWh (estimate)^[9]	32.43¢ per kWh^[2]	$24.15^[10]

Average prices are EIA figures for each utility's residential customers; the basic charge is from the utility's residential tariff.

Los Angeles Department of Water and Power

Net Energy Metering Rider (LADWP, municipal; not subject to CPUC NEM 3.0). LADWP still uses net energy metering. If your system produces more than you use in a billing period, the excess is credited at your rate schedule's energy price. Credit balances carry forward to later bills, except taxes and minimum charges. Any credit left when you close the account is zeroed out, and credits apply only to the meter that measured the excess.^[1]

Charges for solar customers: Any published LADWP rate schedule (rider applies to customer's currently applicable rate)

Power Access Charge (fixed monthly charge, standard rate R-1A): $2.30 (Tier 1), $7.90 (Tier 2) or $22.70 (Tier 3) per month, set by your highest monthly use over the past 12 months and reset each October 1. The R-1A minimum charge is $10/month plus adjustment factors. The R-1B time-of-use rate has a $12.00/month service charge.^[11]
How the Power Access Charge tier is set: The tier is based on your highest monthly energy use in the past year and zone. It is recalculated every October 1.^[12]

LADWP tariffs · LADWP solar page · Serves Los Angeles

Pacific Gas and Electric Company

Solar Billing Plan (Net Billing Tariff, 'NEM 3.0'). Solar power used at home offsets purchases at the retail rate. Power exported to the grid earns hourly Energy Export Credits based on the CPUC Avoided Cost Calculator, usually below retail. Customers who apply between April 15, 2023 and Dec 31, 2027 lock in a 9-year hourly export price schedule. Bills are paid monthly, and credits roll forward to an annual true-up.^[3]

Charges for solar customers: E-ELEC (Electric Home) time-of-use rate for residential NBT customers

Base Services Charge (income-graduated fixed charge): Since March 2026: about $24/month for most customers, $12 for FERA or deed-restricted affordable housing, $6 for CARE. Tariff daily rates (E-1/E-ELEC, effective June 1, 2026): $0.79343 (Tier 3), $0.39688 (Tier 2), $0.19713 (Tier 1). It applies to solar customers and replaces the Minimum Electric Charge.^[4]
Required rate for new solar customers: Residential NBT customers must take service on E-ELEC and do not need an EV, battery or heat pump to qualify.^[13]
NEM legacy transfers with the home: PG&E says the 20-year NEM legacy period is tied to the system, not the owner. A buyer inherits the remaining years.^[14]

PG&E tariffs · PG&E solar page · Serves Fresno

Sacramento Municipal Utility District

Solar and Storage Rate (SSR, Rate Schedule SSR; SMUD municipal, not subject to CPUC NEM 3.0). Customers approved to install solar or storage on or after March 1, 2022 are on the Solar and Storage Rate. They stay on the standard Time-of-Day (5-8 p.m.) rate and are paid a flat 9.6 cents per exported kWh at any hour or season. Export credits can offset only electricity usage charges. Leftover credit carries over to later bills, but the fixed charge, fees and taxes must be paid monthly.^[5]

Charges for solar customers: R-TOD Time-of-Day (5-8 p.m.) rate for residential customers

System Infrastructure Fixed Charge (R-TOD): $27.00/month from January 1, 2026. Scheduled to rise to $27.80 on January 1, 2027. It was $26.20 from May 1, 2025.^[6]
Legacy NEM through 2030: Customers approved before March 1, 2022 may stay on legacy NEM through December 31, 2030. They must move to SSR if they take SMUD battery incentives or expand the system by more than 10% or 1 kW.^[15]

SMUD tariffs · SMUD solar page · Serves Sacramento

San Diego Gas & Electric

Solar Billing Plan (Net Billing Tariff, 'NEM 3.0'). Exports earn Generation and Delivery Export Credits that vary by hour and season. They are calculated from the CPUC Avoided Cost Calculator vintage for the customer's installation year. Residential customers must be on the EV-TOU-5 time-of-use plan. Excess credits roll forward month to month. SDG&E customers do not get the ACC Plus export adder that PG&E and SCE customers receive.^[7]

Charges for solar customers: EV-TOU-5 (SDG&E writes 'EVTOU5')

Base Services Charge (income-graduated fixed charge): Started October 2025: about $24/month for most customers (range $22.22-$26.18 depending on billing days), about $12 FERA/DRAH, about $6 CARE. Export credits cannot offset it.^[8]
Fixed charge cannot be offset by solar credits: For Solar Billing Plan customers the Base Services Charge is non-nettable, so export credits cannot pay it.^[8]

SDG&E solar page · Serves San Diego

Southern California Edison

Solar Billing Plan (Net Billing Tariff, 'NEM 3.0'). Each month SCE bills for grid energy at the TOU-D-Prime retail rate and credits hourly exports with Energy Export Credits. Those credits are priced from the CPUC Avoided Cost Calculator vintage in effect January 1 of the enrollment year. Customers who enroll before January 1, 2028 keep fixed export prices for nine years. An Energy Export Credit Adjustment applies at the 12-month settlement to accounts that net-export over the year.^[9]

Charges for solar customers: TOU-D-PRIME

Base Services Charge (income-graduated fixed charge): Effective November 2025: $24.15/month (about $0.80/day) for most customers, $12.08 for FERA or deed-restricted affordable housing, $6.00 for CARE.^[10]

SCE solar page

State rules that apply

California Solar Rights Act (Civil Code 714) - HOA and deed restrictions: HOA rules and deed covenants that effectively prohibit or restrict solar are void. Only 'reasonable' restrictions are allowed. For PV, a restriction cannot add more than $1,000 to the system cost or cut efficiency by more than 10%. An HOA must approve or deny in writing, and an application not denied within 45 days is deemed approved.^[16]
Residential solar permit fee cap (Gov. Code 66015): Cities and counties may not charge more than $450 plus $15 per kW above 15 kW for a residential PV permit. A jurisdiction can charge more only with a written finding and an adopted resolution or ordinance showing the reasonable cost. The section sunsets January 1, 2034.^[17]
Automated solar permitting mandate (SB 379, Gov. Code 65850.52): Cities and counties must offer an online automated permitting platform such as SolarAPP+ for residential solar up to 38.4 kW AC and paired batteries. Deadlines: September 30, 2023 for jurisdictions over 50,000 people and September 30, 2024 for cities of 50,000 or fewer. Exempt: cities under 5,000 people and counties under 150,000 (including their cities).^[18]
Net Billing Tariff ('NEM 3.0') start date for PG&E, SCE and SDG&E: Customers applying for interconnection on or after April 15, 2023 are on the Net Billing Tariff (Solar Billing Plan) under CPUC Decision D.22-12-056. Exports are credited at Avoided Cost Calculator values instead of retail rates.^[19]
NBT export adder (ACC Plus) - PG&E and SCE only: Residential PG&E and SCE customers who apply before the end of 2027 get an extra export credit for nine years. SDG&E customers and customers required by the building code to add solar are excluded.^[19]
NBT nine-year legacy period: The original customer who interconnects under the NBT is guaranteed the NBT for nine years. Customers who move to the NBT from an older NEM tariff do not get this legacy period.^[19]
Required time-of-use rates under the NBT: NBT customers must use a specific 'electrification' TOU rate: E-ELEC (PG&E), TOU-D-PRIME (SCE), EV-TOU-5 (SDG&E). Bills are paid monthly, and excess credits roll over until the annual true-up.^[19]
NEM 2.0 grandfathering (20 years): Customers interconnected under NEM 2.0 (complete applications by April 14, 2023) may stay on NEM 2.0 for 20 years from their interconnection date, per D.14-03-041.^[19]
NBT system size limit: Under the NBT a system may be sized to the customer's annual electric load plus up to 50% if the customer attests to need.^[19]
Income-graduated fixed charge (AB 205) for PG&E, SCE and SDG&E: On May 9, 2024 the CPUC approved a monthly fixed charge ('Base Services Charge') of $24.15, with $6 for CARE and $12 for FERA or deed-restricted affordable housing. It lowers per-kWh prices by 5-7 cents. Start dates: SDG&E October 2025, SCE November 2025, PG&E March 2026. Solar customers pay it too.^[20]
Net surplus compensation at true-up (IOUs): Surplus energy left at the annual true-up is paid at a wholesale-based net surplus compensation rate. The CPUC describes it as approximately $0.02-$0.03 per kWh.^[19]
2026 attempt to extend the solar property tax exclusion stalled: AB 2389 (Irwin, 2025-26) would have extended the RTC 73 solar exclusion. It was held under submission in the Assembly Appropriations Committee on May 14, 2026, so the exclusion still ends January 1, 2027.^[21]

What it means for sizing and batteries

When exports earn much less than retail, each kWh you use at home as it is produced is worth more than one you export. Size to your daytime and evening use, shift loads (laundry, dishwasher, EV charging) to sunny hours or the plan's off-peak window, and price a battery against the gap between the retail and export rates.

The calculator uses each utility's export rate. City pages: Fresno, Los Angeles, Sacramento, San Diego.

California Net Metering and Solar Export Credits