BC Hydro Net Metering Overhaul: New Self-Generation Rate Takes Effect July 2026

The British Columbia Utilities Commission (BCUC) has approved sweeping changes to BC Hydro’s net metering program that will reshape the economics of residential solar in the province. Starting July 1, 2026, BC Hydro will replace its current Net Metering Service Rate with a new Self-Generation Service Rate that pays solar homeowners a flat 10 cents per kilowatt-hour for surplus electricity exported to the grid. The BC Hydro net metering changes in 2026 represent the biggest shift in BC solar policy in over a decade.

What Changed: Net Metering vs. Self-Generation Rate

Under the old net metering system, BC solar homeowners received credits at roughly the same rate they paid for electricity – effectively a one-for-one exchange. You exported a kilowatt-hour during the day, you got a kilowatt-hour credit to use at night. The value of your exported power matched the retail rate.

Under the new Self-Generation Service Rate, surplus electricity is compensated at a fixed 10¢/kWh. BC Hydro’s current residential rates are approximately 10.73¢/kWh for the first 1,350 kWh per two-month billing period and 13.62¢/kWh above that threshold. For homeowners who primarily export power during the higher-tier consumption period, the new rate represents a reduction in export value.

The key changes:

• Export rate: Fixed at 10¢/kWh (down from variable retail-rate credits)
• Size limits removed: The BCUC eliminated restrictions on generation equipment size, replacing them with limits on how much electricity you can sell – up to 100 kW per phase
• Community generation: A new Community Generation Service Rate allows multiple customers to share a single generating facility, selling up to 2 MW back to BC Hydro at 10¢/kWh

What the BC Hydro Net Metering Changes Mean for Solar Homeowners

Who transitions and when:

If you installed solar with a BC Hydro rebate, you’re moving to the new rate on July 1. If you installed solar independently without the rebate, you can stay on the current net metering rate for the remainder of your 20-year term.

Dollar impact on a typical system:

A 6 kW residential system in the Lower Mainland generates roughly 6,500 kWh annually. If a homeowner consumes 70% on-site and exports 30% (about 1,950 kWh):

• Old net metering: ~$210–$265/year in export credits (at 10.73–13.62¢/kWh)
• New self-generation rate: ~$195/year (at 10¢/kWh)
• Annual difference: $15–$70 less in export value

The impact is modest for systems sized to match household consumption. It’s larger for oversized systems that export heavily. The real message: size your system for self-consumption, not for maximum export.

What Happens Next

• July 1, 2026: New Self-Generation Service Rate takes effect for new customers and rebate recipients
• Ongoing: Existing non-rebate net metering customers continue on current terms (up to 20-year grandfather period)
• New opportunity: Community generation service launches – neighbourhood co-ops, strata buildings, and rural communities can now pool solar generation and sell up to 2 MW at 10¢/kWh

The community generation provision is arguably more significant than the rate change itself. It opens the door for multi-unit residential buildings, agricultural cooperatives, and Indigenous communities to develop shared solar projects with a guaranteed buyback rate.

What You Can Do Right Now

1. Check your status. Did you receive a BC Hydro solar rebate? If yes, you’ll transition July 1. If no, confirm your 20-year grandfather period with BC Hydro.
2. Consider battery storage. With lower export value, storing surplus solar for evening use becomes more attractive. A battery lets you consume 85–95% of your solar production on-site instead of 65–75%.
3. Right-size your system. If you haven’t installed yet, work with your installer to size the system for self-consumption rather than maximum generation. Oversizing for export no longer makes financial sense.
4. Explore community generation. If you’re in a strata building or co-op, the new community rate creates a pathway that didn’t exist before. Check our BC Solar Guide for details.

BC Hydro Solar and Battery Rebates

If you’re weighing the move to self-generation under the new rate, BC Hydro’s rebate program can significantly offset your upfront costs. BC Hydro currently offers up to $5,000 on eligible grid-connected solar panels and up to an additional $5,000 for battery storage — a combined $10,000 toward a solar-plus-battery system.

Solar rebates are calculated at $1,000 per kilowatt of installed capacity, capped at 50% of total project cost. Battery rebates start at $500 per kilowatt-hour of storage. If you enrol your battery in BC Hydro’s Peak Saver program, the battery rebate increases to a maximum of $5,000. Batteries not paired with solar or not enrolled in Peak Saver are no longer eligible as of April 1, 2026.

Beginning June 1, 2026, installations must be completed by a Home Performance Contractor Network (HPCN) member to qualify. Full details, eligibility requirements, and the application form are available on BC Hydro’s solar and battery rebate page.