Regulators Propose Shorter Solar Grandfathering Terms
California utility regulators are considering cutting the guaranteed solar net metering period for customers of three smaller utilities from 20 years to 15 years.
Updated on Nov. 6, 2026 in Utilities
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Staff at the California Public Utilities Commission proposed shortening the grandfathering period for solar customers of Pacific Power, Bear Valley Electric Service and Liberty Utilities. The Solar Rights Alliance opposes the change, arguing it breaks existing 20-year net metering guarantees.
Why it matters
The proposal would reduce credits solar homeowners receive for electricity they export to the grid, affecting the economics of systems installed under current rules. The three utilities have not requested the change, and the proposal is aimed at making utility programs more cost-effective and aligned with California's energy needs.
The proposal would cut the guaranteed net metering period from 20 years to 15 years for existing solar customers of three utilities. The alliance warns affected homeowners could lose tens of thousands of dollars in expected savings, though the extraction does not confirm a formal impact analysis.
The players
California Public Utilities Commission
The state agency that regulates investor-owned utilities in California, including rates and customer compensation programs for rooftop solar.
Solar Rights Alliance
An advocacy group that represents solar customers and opposes changes to existing net metering guarantees.
Liberty Utilities
A utility serving customers in the Lake Tahoe area, one of the three companies whose solar customers would be affected by the proposal.
The details
Under the proposal, Pacific Power, Bear Valley Electric Service and Liberty Utilities would shorten the grandfathering period that protects existing solar customers' credits for exported electricity. The alliance argues this breaks guarantees homeowners relied on when installing systems, and it points to Assembly Bill 942, introduced in 2025 to modify legacy solar contracts, which was defeated and rewritten.
Timeline
2025: Assembly Bill 942 introduced to modify legacy solar contracts, later defeated and rewritten
November 6, 2026: Article published on the CPUC staff proposal and opposition
Market Landscape
The proposal reverses the 20-year net metering guarantee that has governed rooftop solar in these utilities' territories, a term the alliance says has been promised repeatedly over the past decade. It signals regulators weighing program cost-effectiveness against the expectations of solar buyers who installed systems under existing terms.
Solar customers of Pacific Power, Bear Valley Electric Service and Liberty Utilities could see smaller credits for exported electricity if the 15-year term is adopted. Homeowners weighing a solar purchase under these utilities should account for the possibility that the guaranteed net metering period may shorten.
The takeaway
Homeowners with solar systems should review their net metering terms and watch the commission's decision, since guaranteed credit periods may change. Anyone considering solar should ask their utility how long its export credit guarantees last.
Further reading
For more on how regulators set these terms, see the Utilities coverage on this site.
Source note: This article includes information reported by Sierra Sun.
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