State incentives and net metering
California Net Billing Tariff
Exports are credited at avoided-cost values that vary by hour and sit well below the retail import price, instead of one-for-one net metering. Self-consumption is worth more than exports, so sizing and daytime load drive the result.
CaliforniaNet billingExport creditUtility tariff
Independent directory, no paid listings
We are not paid by any installer or program listed here. There are no sponsored placements and no affiliate links. This directory is a free tool to help you compare your options. Listings are ordered by state, then alphabetically by program name, and payment does not affect that order.
Full record for this entry
| Program name | California Net Billing Tariff |
|---|---|
| State | California |
| Program type | Net billing |
| Administering body | California Public Utilities Commission (CPUC) |
| Status as the source states it | New rooftop systems interconnect under the net billing tariff; earlier net metering tariffs are not the default for new systems, per the DSIRE summary for California. |
| What it covers | Exports are credited at avoided-cost values that vary by hour and sit well below the retail import price, instead of one-for-one net metering. Self-consumption is worth more than exports, so sizing and daytime load drive the result. |
| Incentive amount note | No per-home dollar amount is recorded here. Export values vary by hour and utility tariff, so no single figure is published in this entry. |
| Tags | California, Net billing, Export credit, Utility tariff |
| Official source | California Public Utilities Commission, NEM Revisit |
| Checked date | 2026-10-29 |
Source note: DSIRE summary for this state, as recorded on this site from DSIRE on 2026-10-04 and re-checked for this directory on 2026-10-22 against official state, utility and program sources. Profile sections were added on 2026-10-26 from the official source above and the official pages cited in the text; every figure is attributed where it appears. Program terms change. Confirm the current status, eligibility and value for your address in the source above and in your utility tariff before you sign anything.
About this program: how it works
A successor tariff priced by the hour, not by the retail rate
The California Public Utilities Commission states that it adopted Decision D.22-12-056 in December 2022, establishing the net billing tariff as successor to NEM 2.0 for customers submitting an interconnection application on or after April 15, 2023, in the territories of Pacific Gas and Electric, Southern California Edison, and San Diego Gas and Electric. Imports and exports are priced separately, and exports earn less than the retail import price.
The CPUC states that customers are paid for exported electricity based on its value to the grid, determined by the Avoided Cost Calculator, which quantifies that value at different times of day based on the avoided cost to the utility of buying clean energy elsewhere. There is no single export rate: the value changes by hour and by month, tracking what the grid needs at that moment.
Why evening exports are worth the most, and midday exports the least
The CPUC states that the tariff is expected to promote grid reliability, incentivize solar and battery storage, and control electricity costs. At midday California already has abundant solar, so an export avoids little cost and earns a low calculator value. In the late afternoon and evening, solar output falls while demand stays high, so an export displaces costlier power and earns more.
San Diego Community Power, which bills under this structure, states that excess generation is credited at the hourly calculator rate, while usage is charged at retail, with no netting. A kilowatt hour used yourself avoids a full retail purchase; one exported earns only its hourly value.
Why storage pairs with this tariff
The CPUC states that customers are charged on high differential time of use rates, which incentivize battery storage so customers can store energy and then use and export it in the evening, when the sun is down and prices are higher. A battery holds midday production that would have been exported at a low value and discharges it in the evening, to run the home instead of buying peak priced power, or to export when the calculator value is higher.
Sizing follows the same logic. A system sized only for maximum production exports a large share at low midday values. A system sized around daytime load, evening load, and storage keeps more production on the high value side. Ask an installer to model exports hour by hour.
Grandfathering for NEM 1.0 and NEM 2.0, and the nine year term for new systems
The CPUC states that the decision did not affect customers who submitted a NEM application by April 14, 2023. San Diego Community Power states that NEM 1.0 and NEM 2.0 customers remain on NEM until the end of their legacy period, or 20 years from connection, then transition to the Solar Billing Plan, and sooner if they increase capacity by more than 10 percent or 1 kW, or choose to switch.
For new systems, San Diego Community Power lists a 9 year legacy period, compared with 20 years for NEM 1.0 and NEM 2.0. Confirm your tariff and any legacy end date in your interconnection records before valuing a system.
Also in California
- Self-Generation Incentive Program (SGIP): Solar plus storage incentive
Compare the quotes this program affects
An incentive only counts when it is named, in writing, in a quote. Line up the quotes you collect in the quote comparison worksheet and check each installer in the national installers directory.