Effective July 1, 2026, BC Hydro is replacing net metering with a new self-generation service rate, also known as net billing. If you’re a BC Hydro customer with solar panels, or you’re considering going solar, this change may affect your system’s financial performance. We believe informed clients make better decisions. Here’s what is changing, what it means for your solar investment, and how you can maximize the value of your system moving forward.
What’s Changing?
Starting July 1, 2026, customers who have received a BC Hydro solar rebate, as well as all new BC Hydro solar customers, will automatically be enrolled in the self-generation program and net billing. Here’s how it works:
Step 1: Your solar panels generate electricity, and your home uses that energy first.
Step 2: Any surplus electricity that isn’t immediately used is exported to the grid and credited by BC Hydro at 10¢ per kWh. These credits will appear on your regular billing cycle.
How This Differs from Traditional Net Metering
Under BC Hydro’s previous net metering program, excess electricity was credited on a kWh-for-kWh basis, effectively matching the retail rate customers paid for electricity. Currently, BC Hydro residential customers pay:
- 11.87¢/kWh for electricity within the Step 1 threshold
- 14.08¢/kWh for electricity above the Step 1 threshold
Under the new self-generation rate, exported energy earns a flat 10¢/kWh credit, regardless of your retail electricity rate. It’s important to note that electricity consumed directly in your home still offsets the full retail cost of power. In other words, every kilowatt-hour your home uses from your solar system continues to provide the same value as before.
According to BC Hydro, available solar incentives, including rebates of up to $5,000 for homeowners and $10,000 for businesses, are expected to offset the impact of the new rate structure. BC Hydro has also indicated that the 10¢/kWh export rate will be reviewed after five years.
The Financial Impact
For most BC Hydro customers, a typical residential solar system currently achieves payback in approximately 9 to 12 years. Under the new self-generation model, payback periods may increase by roughly two years, resulting in a typical payback range of 11 to 14 years, depending on your household’s energy use and system size. While the return on investment may take slightly longer, solar remains a strong long-term investment. After your system has paid for itself, your panels can continue producing clean electricity for an additional 15 to 20 years while helping protect you from future utility rate increases.
The Numbers: A Real-World Example
An 8 kW residential solar system on Vancouver Island typically generates approximately 8,500 kWh of electricity annually. If a household uses 65% of that energy directly and exports the remaining 35% (approximately 2,975 kWh) to the grid:
Under Net Metering
- Export credit value: approximately $357/year
- Based on a blended average electricity rate of roughly 12¢/kWh
Under Self-Generation
- Export credit value: approximately $297/year
- Based on the new 10¢/kWh export rate
Difference
- Approximately $60 less per year in export credits
For most homeowners, this represents a relatively modest reduction in annual savings.
How to Optimize Your System
The new rate structure places greater value on using solar energy as it is produced. To maximize savings, homeowners can shift discretionary electricity use to daytime hours whenever possible, including:
- Running dishwashers during the day
- Doing laundry during daylight hours
- Charging electric vehicles while the sun is shining
- Operating pool equipment during peak solar production
Increasing self-consumption reduces the amount of electricity you need to purchase from the grid and helps maximize the value of every kilowatt-hour your system generates.
Should You Consider Battery Storage?
Some homeowners may benefit from battery storage, which allows excess solar energy generated during the day to be stored and used later in the evening. Battery systems can:
- Increase self-consumption
- Reduce grid dependence
- Provide backup power during outages
- Improve overall energy resilience
BC Hydro currently offers rebates of up to $1,500 toward battery storage installations.
If you’re considering battery storage, our Solar Advisors can help determine whether it makes financial and practical sense for your home.
Can I Stay on Net Metering?
Some customers may be eligible to remain on the existing net metering program.
If You Installed Solar Without a BC Hydro Rebate
You are grandfathered into net metering for up to 10 years from your original net metering start date.
If You Received a BC Hydro Rebate
You may remain on net metering for up to 10 years from your original start date if you repay the rebate received from BC Hydro. For most homeowners, the rebate significantly reduces the upfront cost of solar and is expected to offset the impact of the new export rate. Solar homeowners who are unsure whether it makes sense to keep or repay their rebate can compare projected rates and payback periods using BC Hydro’s online comparison tools. Customers wishing to remain on net metering and repay their BC Hydro incentive must apply by June 30, 2026.
The Bottom Line
The transition from net metering to net billing reduces the value of exported solar energy, but for most homeowners with a properly sized solar system, the overall financial impact is modest. The core value of solar remains unchanged: generating your own clean electricity for 25+ years, reducing the energy you purchase from the grid, and protecting yourself from rising utility costs over the long term.
Have Questions About How These Changes Affect You?
Whether you’re considering solar, evaluating battery storage, or trying to determine whether staying on net metering makes sense, our team is here to help. Contact SkyFire Energy to discuss your unique situation and explore the best path forward for your home.