Of everything that can quietly change the value of a solar home at resale, net metering is the one people most often get wrong — because it's invisible until the electric bill arrives. A generous, grandfathered net-metering rate can be worth thousands of dollars a year to whoever owns the system. But whether that rate follows the panels to the next owner, resets to a stingier successor tariff, or disappears entirely depends on the state and the specific utility. Here's how to think about it, and exactly what to verify before you buy or sell.
Net metering, net billing, and grandfathering
Net metering credits you for the excess power your system sends to the grid, often at or near the full retail rate — the most valuable arrangement. Many states have since moved to net billing (California's NEM 3.0 is the best-known example), which pays a lower, market-based rate and lengthens payback. When a state changes its rules, existing systems are usually grandfathered onto the older, better terms for a set number of years. That grandfathered status is the asset — and the question at resale is whether it survives a change of owner.
Why "does it transfer?" has no single answer
There is no national rule. Transfer treatment is set state by state and, within a state, sometimes utility by utility. Broadly, you'll encounter three patterns:
- Transfers with the home. The grandfathered tariff stays attached to the system/meter for its remaining eligibility period regardless of who owns the house. Best case for a buyer.
- Transfers for the remaining term only. The buyer inherits the grandfathered rate, but only until the original grandfathering window closes — which may be sooner than they assume.
- Resets on sale or change of account. Some rules tie grandfathering to the original customer; a new account holder is moved to the current (less generous) tariff. Worst case — the "low bill" the listing advertised evaporates for the buyer.
How much value is at stake
It's not trivial. Depending on system size, local rates, and how much power the home exports, the gap between a grandfathered full-retail net-metering rate and a successor net-billing rate can run from a few hundred to a couple of thousand dollars a year. Over the remaining life of a system, that's a five-figure swing in the value the solar contributes to the home — which is exactly why it belongs in the conversation before a price is set.
2026 net metering changes by state
Updated October 15, 2026. These are the changes most likely to affect a solar home's value or a new solar sale. Dates are effective dates unless noted. Always confirm the current tariff with the serving utility.
| Date | State | What changed | Existing systems |
|---|---|---|---|
| 2025-12-31 | Federal | The 30 percent homeowner solar tax credit (25D) ended for expenditures after this date. | Credits already earned can carry forward. |
| 2026-03-01 | Utah | Rocky Mountain Power Schedule 137 export credit revision took effect. | Check the customer's schedule. |
| 2026-04-30 | Virginia | SCC rejected the core of Dominion's request to cut compensation. 1:1 kWh netting stays and the proposed application fee was rejected. Starting about May 2027, customers who are not low-income and connect a new or modified system pay a $1 monthly charge, with year-end excess paid at about 5.8 cents per kWh (SCC case PUR-2025-00079). | Grandfathered. |
| 2026-06-01 | Illinois | Public Act 104-0458 extends net metering eligibility to standalone storage and vehicle-to-grid systems up to 5,000 kW. | No change. |
| 2026-07-04 | Federal | Begin-construction cutoff for the business credit (48E) on leased and PPA systems; otherwise the system must be placed in service by 2027-12-31. | No change. |
| 2026-09-01 | Arizona | Export rate for new APS and UNS interconnection requests cut 10 percent, to about 5.55 cents per kWh. Seventh straight annual cut; state rules cap each cut at 10 percent. | Keep the rate in effect at their application for 10 years from interconnection. Arizona guide. |
| 2026-12-31 | North Carolina | Duke Energy's Net Metering Bridge rider closes to new participants on 2027-01-01 and has a yearly capacity cap (38,700 kW AC for Duke Energy Carolinas and 43,500 kW AC for Duke Energy Progress in 2026). Customers keep it up to 15 calendar years from the date their interconnection application was submitted. Residential customers on the original Rider NM must move to the Bridge rider or another rider by 2027-01-01. Full guide. | Rider NM customers must switch riders by 2027-01-01. |
Scheduled: what changes next
- Arizona, every year. Expect another export-rate step-down each fall for new interconnection requests, up to 10 percent at a time. APS steps down each September 1; Tucson Electric Power each October 1 (now $0.0462 per kWh through 2027-09-30).
- North Carolina, 2027-01-01. Duke's Bridge rider closes to new participants; new solar customers take Residential Solar Choice, which requires time-of-use with critical peak pricing. Duke guide.
- Federal, 2027-12-31. Placed-in-service deadline for leased and PPA systems that did not begin construction by 2026-07-04. Lease and PPA tax credit guide.
- Iowa, after 2027-07-01. The state commission must open a value-of-solar proceeding (sooner if distributed generation reaches 5 percent statewide).
- Idaho, 2028. Idaho Power's export credit stays in place until its April 1, 2028 update filing; Rocky Mountain Power files by 2028-07-01. Idaho guide.
- California, watch list. A 2025 bill (AB 942) would have moved home buyers off legacy NEM; that provision was removed in July 2025. Legacy NEM 1.0 and 2.0 still run 20 years from interconnection and pass to a buyer if the system stays put.
How each state got here, in order: solar policy history by state.
Why a deadline brings door-knockers
When a state or utility announces that a better rate closes on a date, sales teams move in to sign as many homes as possible before it. Right now that means Duke Energy territory in North Carolina before December 31, 2026, and Arizona every summer before the September rate cut. A real deadline is not a scam, but "sign today or lose it" is also the pitch that shows up in nearly every state attorney general solar lawsuit. Ask for the deadline in writing from the utility, not the salesperson, and read the cancellation terms first. If you already signed under pressure and the system is not what you were promised, tell us what happened. New state solar sales laws are covered in solar consumer protection laws by state, 2026.
Sources for the 2026 tables: PV Tech on the Arizona cut (2026-08-17); Virginia SCC ruling summary (2026-05-05); Duke Energy net metering tariffs, NCUC Docket E-100 Sub 180; Solar Power World on 25D and 48E; netmeteringbystate.com change log (Utah, Illinois, Iowa, Idaho rows); Solar Builder on AB 942.
What to verify before you buy or sell
- The utility and rate schedule. Identify the serving utility and the exact net-metering/net-billing schedule the system is on today.
- Grandfathering status and remaining years. Is the system grandfathered, and until when?
- Transfer rule on change of ownership. Does the tariff stay, stay-for-a-term, or reset when the account changes hands? Confirm with the utility in writing.
- Account transfer mechanics. Some utilities require a specific process to move net-metering to the new owner; missing it can drop the system to a default rate.
A SolarDisclosure™ report identifies the serving utility and the system's net-metering status, so the value you're counting on is confirmed — not assumed.
Look up the system →This is the companion to our focused guide on how the NEM tariff transfers at resale. For definitions, see the solar glossary.
General information, not legal or financial advice. Net-metering rules change frequently and vary by state and utility — verify current terms with the serving utility for the specific property.