Solar Customers Face Shorter Credit Guarantee
Existing solar customers of three California utilities could lose export credits after 15 years instead of 20, changing system payback math.
Updated on Nov. 6, 2026 in Utilities
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Should state regulators be allowed to shorten existing rooftop solar agreements?
California Public Utilities Commission staff have proposed shortening the solar grandfathering period for customers of three smaller utilities, Pacific Power, Bear Valley Electric Service and Liberty Utilities, from 20 years to 15 years. Solar Rights Alliance opposes the proposal, arguing it breaks existing 20-year net metering guarantees.
Why it matters
The proposal would reduce the credits solar customers receive for electricity exported to the grid, directly changing the economics of rooftop solar systems in the affected service territories. The three utilities have not requested the change, which puts the rule shift at the regulator's initiative rather than the utilities'.
The proposal would cut the guaranteed net metering term for existing solar customers from 20 years to 15 years, affecting customers of three smaller California utilities. The Solar Rights Alliance says the state has made roughly six times as many 20-year rooftop solar promises over the last decade, a figure that frames how many households rely on the current guarantee.
The players
California Public Utilities Commission
The state regulator that sets rates and programs for investor-owned utilities, including net metering rules for rooftop solar customers.
Solar Rights Alliance
An advocacy group representing solar customers that opposes changes to existing net metering guarantees.
Pacific Power
A regulated electric utility whose solar customers would be affected by the proposed shortened grandfathering period.
Liberty Utilities
A regulated electric utility serving the Lake Tahoe area whose solar customers would be affected by the proposal.
Bear Valley Electric Service
A small regulated electric utility whose solar customers would be affected by the proposed shortened grandfathering period.
The details
Net metering credits compensate solar customers for electricity they export to the grid, and the grandfathering period determines how long those terms stay fixed for an existing system. Shortening that period from 20 years to 15 years would reduce the window in which exported power earns the original credit rate. The change would reform how these utilities compensate customers for exported electricity, according to the proposal. The CPUC staff framed the aim as making utility programs more cost-effective and better aligned with California's energy needs.
Timeline
2025: Assembly Bill 942 was introduced to modify legacy solar contracts, was defeated and rewritten.
November 6, 2026: Article reporting the CPUC staff proposal and the alliance's opposition was published.
Market Landscape
The proposal follows Assembly Bill 942, introduced in 2025 to modify legacy solar contracts, which was defeated and rewritten before passage. It shows the same pressure on existing net metering terms now being pursued through the regulator rather than the legislature.
Operators of solar installation and service businesses in the affected Pacific Power, Bear Valley and Liberty territories should factor in lower projected export credits for existing customers if the proposal advances. Solar sales and financing firms may need to revisit savings projections built on the 20-year guarantee.
The takeaway
Track the CPUC proceeding on this proposal, since its final terms will determine the grandfathering period. Solar businesses serving these territories should review customer savings models against a 15-year term before the commission acts.
Further reading
For more background on the rules shaping these rates, see Utilities coverage across California.
Source note: This article includes information reported by Sierra Sun.
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Should state regulators be allowed to shorten existing rooftop solar agreements?
