How does the California Rate Relief Program work?

We install solar panels on your roof at no cost out of pocket. Instead of paying your utility company a different amount every month, you pay a fixed monthly payment that is typically 30 to 50% less than what you are currently paying. The program covers 100% of the cost for solar panels, backup batteries, and installation.

Who qualifies for the Rate Relief Program?

California homeowners with SCE, PG&E, or SDG&E as their utility provider, monthly electric bills of $150 or more, and a credit score of 650 or above typically qualify. Renters are not eligible for this program.

Is there any cost to the homeowner?

There is $0 out of pocket cost. The program covers the full cost of solar panels, battery storage, and professional installation. Instead of paying your utility company, you simply pay a lower, fixed rate for the power generated by the system on your roof.

What happens if something breaks?

The program includes a comprehensive 25-year bumper-to-bumper warranty. If a panel breaks, it gets fixed. If an inverter fails, it gets replaced. All maintenance and repairs are covered at no cost to you for 25 years.

Which utility companies are supported?

The program currently supports homeowners with Southern California Edison (SCE), Pacific Gas & Electric (PG&E), San Diego Gas & Electric (SDG&E), Moreno Valley Utility (MVU), and Los Angeles Department of Water and Power (LADWP).

NEM 3.0 California Timeline: Key Dates, Deadlines, and What Happens Next

California's NEM 3.0 — formally the Net Billing Tariff — is the most consequential residential solar policy change of the last decade. It cut solar export credits by roughly 75%, reshaped the installer market, and forced a shift toward battery-paired systems. Here is the complete timeline of how it got here and what's still ahead through 2026 and beyond.

December 15, 2022 — CPUC Votes to Approve

The California Public Utilities Commission unanimously approves the Net Billing Tariff, replacing NEM 2.0 for new solar interconnections. The vote follows two years of proceedings, industry pushback, and multiple revised drafts. Key provisions finalized: export credits drop from near-retail to avoided-cost (roughly 5-8 cents/kWh), customers retain grandfathering under their existing NEM tariff for 20 years from interconnection, and the new structure takes effect for applications submitted after a 120-day transition period.

April 14-15, 2023 — The Go-Live Deadline

The NEM 2.0 cutoff arrives. Any interconnection application submitted by April 14, 2023 and approved within 3 years qualifies for 20-year grandfathering under NEM 2.0. Applications submitted on or after April 15 fall under the new Net Billing Tariff. Installers and homeowners rush to submit before the deadline — California sees a record monthly interconnection volume in March and April 2023 as the industry races the clock.

Summer-Fall 2023 — Installation Volumes Collapse

After the rush, new applications plunge. California residential solar installation volumes drop by roughly 40% compared to the prior year as homeowners and installers recalibrate the economics under the new tariff. Higher-pricing installers struggle. Battery attachment rates surge as the industry pivots from solar-only systems to solar + storage bundles that make the NEM 3.0 math work.

2024 — Industry Consolidation Begins

The financial pressure from NEM 3.0, combined with rising interest rates and loan-financing costs, triggers the first wave of installer bankruptcies and restructurings. August 2024: the original SunPower Corporation files Chapter 11. Complete Solaria acquires its operating assets and rebrands to SunPower in April 2025. Storage attachment crosses 50% of new CA residential solar installs for the first time.

June 2025 — Sunnova Chapter 11

Sunnova Energy International files Chapter 11 bankruptcy. Assets are acquired by Solaris Assets (backed by bondholders) and portfolio management transitions to SunStrong Management. Approximately 500,000 Sunnova legacy customers transition to the new entity for their lease, PPA, and warranty obligations. See our Sunnova review for the details.

2025 — AB 942 Legislative Activity

California Assembly Bill 942, debated throughout 2025, proposes changes to NEM grandfathering when a solar system is transferred with a home sale. The specific provisions affect whether a new homeowner inherits the original NEM tariff of the system or gets reset to the current tariff. Industry and consumer advocacy groups weigh in. The bill's specific language and enactment status continue to evolve through legislative sessions.

April 15, 2026 — Freedom Forever Chapter 11

Another top-tier California-headquartered installer files for Chapter 11 bankruptcy. Freedom Forever Solar, based in Temecula, cites $500M to $1B in liabilities. The Chapter 11 process continues through 2026. See the Freedom Forever review for current status.

2026 and Beyond — The Open Questions

Several NEM 3.0-adjacent issues remain in motion:

The CPUC's next net-billing review.The NBT is reviewed periodically. Industry groups continue to argue the export-credit rate is set too low and that a partial reversion toward retail-rate credit would restore residential solar growth. Any material change to the tariff would go through another multi-year proceeding.

NEM 2.0 grandfather expirations. The earliest NEM 2.0 customers — interconnected in 2016 — will start aging out of their 20-year grandfather windows in 2036. What those customers transition to depends on the tariff in effect at that time.

Virtual Power Plant (VPP) expansion.California utilities and installers continue to expand VPP programs where residential batteries feed back to the grid during peak demand in exchange for credits or payments. Sunrun's ~4 GWh networked fleet is the largest. VPP participation is one of the practical ways to recapture some of the NEM 3.0 value gap.

Utility rate inflation. SCE, PG&E, and SDG&E rates continue to rise 6-12% annually. Paradoxically, higher utility rates make NEM 3.0 solar more valuable over time — the exported kWh value doesn't change much, but the consumed kWh value (what solar offsets for self-consumption) goes up. The rate-inflation factor is the biggest single reason solar still works for most California homeowners under NEM 3.0.

What This Means For You

If you installed solar before April 15, 2023, nothing about the above changes your situation — you're grandfathered under NEM 2.0 and your economics remain as originally sold.

If you're shopping for solar in 2026, the economics work — especially with a battery — but the system design has to prioritize self-consumption rather than export. See our NEM 3.0 worth-it analysis for the full breakdown, and our net-billing-vs-net-metering explainer for the underlying mechanics.