“Net metering” is still the phrase most homeowners use, but in SDG&E territory in 2026, the rate structure depends on when the solar system was approved to operate and which tariff applies. For most new solar customers, the current framework is the Net Billing Tariff (NBT), which SDG&E calls the Solar Billing Plan.
This article breaks down the main net metering structures you will hear about, how credits work under each, what is “locked in” and for how long, and why solar system design (and batteries) matter more now than they did under older rules.
What “net metering” means in 2026
At a high level, every grid-tied solar home does two things:
- Imports electricity from the grid when the home needs more power than the solar system is producing.
- Exports electricity to the grid when solar production is greater than the home’s usage.
The part that changes across programs is how SDG&E credits exported electricity and how those credits interact with your bill over time.
The three “program eras” people talk about
NEM 1.0 and NEM 2.0 (legacy net energy metering)
These are the older “net energy metering” tariffs. Under these structures, exports were generally credited at or near retail rates, which made exporting midday solar far more valuable than it is for most new customers today. Standard NEM tariffs are no longer open to new enrollments, but many homeowners remain on them under legacy rules.
Legacy duration for NEM 2.0: Customers are allowed to remain on NEM 2.0 for 20 years from the date they interconnected, or they can switch to the current tariff.
NBT (often called “NEM 3.0”)
NBT is the current framework for most new interconnections. The CPUC calls it the Net Billing Tariff and notes that the utilities refer to it as the Solar Billing Plan.
Under NBT, exports earn Energy Export Credits that are based on the grid value of energy during that hour, not simple retail-rate netting across the billing period.
“Current” vs “Legacy” export pricing files (within the Solar Billing Plan)
Even under the Solar Billing Plan, export credit values are not always the same for every customer. SDG&E publishes Current 2026 Export Pricing and also Legacy export pricing files (including a Legacy 2026 set).
How credits work under NEM 2.0 vs NBT
How NEM 2.0 typically behaves
Under classic net metering behavior, the most intuitive explanation is “the meter runs backward” during periods of net export. The result is that exported energy can offset imported energy more directly at retail-like values (depending on tariff details and bill components).
At annual true-up, if a customer has net surplus generation, the CPUC explains that compensation for surplus is typically at a much lower “net surplus compensation” rate (not retail).
How NBT (Solar Billing Plan) behaves
Under the Solar Billing Plan, imports and exports are priced differently:
- Imports are billed based on your TOU rate schedule.
- Exports earn Energy Export Credits based on export pricing tables that vary by time and season.
The practical implication is straightforward: self-consumption matters more than it did under older NEM structures. Solar energy that is used in the home directly avoids buying electricity at retail TOU import rates. Solar energy that is exported earns credits that often do not match retail import prices across all hours.
Where SDG&E publishes the 2026 export credit values
SDG&E posts downloadable export credit files for the Solar Billing Plan, including a ZIP labeled Current 2026 Export Pricing, and additional ZIPs for legacy pricing.
SDG&E also publishes a guide explaining export pricing and how to interpret the data. In that document, SDG&E states that customers are guaranteed export pricing for nine years from the Permission-To-Operate (PTO) date of their solar system, and that longer-term posted values are for illustration beyond the lock-in period.
The “lock-in” periods that matter for homeowners
NEM 2.0 lock-in period
The CPUC states that customer-generators can remain on the NEM 2.0 tariff for 20 years from interconnection.
Solar Billing Plan export pricing lock-in period
SDG&E’s export pricing explanation states that export pricing is guaranteed for nine years from PTO.
This nine-year lock-in is one reason SDG&E posts “current” and “legacy” files and why “vintage” matters. A system’s PTO date affects which export pricing schedule applies for that lock-in period.
Required rate plan structure for Solar Billing Plan customers
The Solar Billing Plan is built around TOU pricing for both importing and exporting electricity. SDG&E states that residential customers on the Solar Billing Plan have a Time-of-Use (EVTOU5) plan.
That matters because it shifts the economics of solar toward reducing imported electricity during expensive periods, especially in the late afternoon and evening, and aligning solar production and storage with TOU pricing windows.
Why batteries matter more under the Solar Billing Plan
Under older net metering structures, exporting large amounts of midday solar could still provide strong bill value because exports were credited at more retail-like rates.
Under NBT, export credits are time-sensitive and often lower than retail import costs. This shifts the strategy toward:
- Using solar directly in the home when it is produced.
- Storing solar energy for later use during expensive evening hours.
- Exporting strategically when export credits are higher (which can occur in certain high-demand periods).
Even for homeowners who do not install a battery immediately, many installers now design solar systems to be battery-ready, because storage can be added later to improve peak-hour coverage.
What good solar design looks like in 2026
Under the Solar Billing Plan, system design matters more than ever because savings are less about “how much you export” and more about “how well your system reduces expensive imports.”
Strong designs are built around three inputs:
1) Household load profile
When does the home actually use power?
- High daytime usage can benefit strongly from solar-only, because solar production directly offsets imports.
- High evening usage often benefits from storage, because evening TOU prices tend to be highest and solar production is lower.
2) Roof production timing and constraints
Panel placement affects production timing. Roof planes, shading, and orientation influence how much energy is produced earlier vs later in the day. When TOU pricing is a major factor, production timing is not just a technical detail. It directly affects bill value.
3) The homeowner’s primary goal
Common goals look different under NBT:
- Lower monthly bills: maximize self-consumption and reduce peak imports.
- Prepare for an EV: plan for overnight charging and consider storage for peak coverage.
- Reduce peak exposure: prioritize evening strategy (often storage-forward).
Common SDG&E net metering questions in 2026
Is “classic net metering” still available for new solar customers?
Standard NEM tariffs are closed to new enrollments. Most new customers interconnect under the Net Billing Tariff, which SDG&E refers to as the Solar Billing Plan.
Where can 2026 export credit tables be found?
SDG&E publishes export pricing ZIP files, including Current 2026 Export Pricing, along with legacy export pricing ZIPs.
How long are Solar Billing Plan export prices locked in?
SDG&E’s export pricing guide states export pricing is guaranteed for nine years from the PTO date.
How long can NEM 2.0 customers stay on their tariff?
The CPUC states NEM 2.0 customers may remain on the tariff for 20 years from interconnection.
The takeaway and next step for homeowners considering solar
In 2026, SDG&E “net metering” is best understood as a timing and rate-structure problem. Under the Solar Billing Plan, the best outcomes typically come from reducing high-cost imports and increasing self-consumption, rather than relying on exports being valued like retail electricity in every hour. Export credits vary by time, and SDG&E publishes the 2026 export pricing files so homeowners (and installers) can plan around those values.
That is why solar proposals should be evaluated based on how well they are designed for:
- TOU importing costs,
- export credit timing,
- and optional storage that can help cover the late-day high-cost window.
Get a solar quote built for SDG&E’s 2026 structure
Choosing the right installer matters more when the rate structure is more complex, because system design decisions now have a bigger impact on real bill results.
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