Following the British Columbia Utilities Commission (BCUC) decision on March 24, 2026, BC Hydro is officially closing its classic Solar Net Metering program (Rate Schedule 1289) to new customers and transitioning to a new Self-Generation Service Rate (Rate Schedule 2289) effective July 1, 2026.
This major shift replaces retail-rate credit “banking” with a net-billing system, slashing the compensation rate for surplus electricity exported to the grid to a flat 10 cents per kWh. For British Columbia residential and commercial customers looking to protect their solar power investment under these new rules, your primary options to adapt to this change include: repaying past solar rebates, integrating battery storage, or right-sizing new solar panels to match household consumption rather than relying on grid exports.
BC Hydro's New Changes to Their Net Metering Program
The biggest change is the closure of the classic solar Net Metering Service Rate to new sign-ups. It is replaced by the new Self-Generation Service Rate, fundamentally shifting the financial incentives for residential and commercial solar installations.
For Abbotsford, British Columbia, residents looking to install solar panels, this transition marks a major shift in how clean, renewable energy is valued in the province.
| Policy Feature | Legacy Net Metering | New Self-Generation |
| Effective Date | Closed to new customers as of July 1, 2026 | Active for all new connections on or after July 1, 2026 |
| Grid Compensation | Retail-rate energy banking (1-to-1 kWh credits) | Flat 10 cents per kWh monetary credit |
| Credit Expiry | Carried over annually as energy credits | Applied directly as a dollar amount per billing cycle |
| Grandfathering Period | Existing customers can stay on for 10 years from their original start date | Automatic transition once the 10-year period expires |
Core Rules & Eligibility for Self-Generation
Despite the rate restructuring, the physical requirements to connect a solar panel system to the grid remain highly accessible. To participate in the new Self-Generation program, your system must meet these criteria:
- The generation equipment must be owned or leased directly by you (the BC Hydro customer).
- Must use clean, renewable energy sources as defined by the BC Clean Energy Act (primarily Solar System, though wind and micro-hydro qualify).
- The system’s aggregated nameplate rating or net grid injection limit cannot exceed 100 kW (or 100 kW per phase of service).
A Note on Billing: Under the new structure, self-generation customers are billed under two separate rates. Your standard rate determines what you pay BC Hydro for the power you consume, while Rate Schedule 2289 strictly dictates the 10¢/kWh compensation you receive for the power you export.
Your Three Paths Forward Under the New Generating System
Don’t know if you like the new BC Hydro updates?
Your strategy depends on whether you already have solar panels or are looking to install solar panels in the future. You have three primary pathways to protect your investment, lower your electricity bills, and maintain your energy independence:
Grandfathering & The “Repay” Option (For Existing Customers)
If you already have a grid-connected system, you do not have to transition to the 10¢/kWh rate immediately. You are automatically grandfathered into the classic Net Metering program for up to 10 years from your initial interconnection date.
Customers who accepted a solar rebate prior to March 24, 2026, have a one-time opportunity to repay that rebate in full by June 30, 2026, to remain on the old Net Metering rate for up to 10 years.
- Should you repay? For the vast majority of standard-sized systems, keeping the upfront rebate makes more financial sense than returning thousands of dollars just to preserve a rate premium to offset your energy costs over a limited grandfathering window.
Transitioning to Battery Storage
With BC Hydro’s new net billing system, the credit you receive for sending power to the grid (10¢/kWh) is lower than what you pay to draw power from the grid (approx. 11.87¢ to 14.08¢/kWh).
Instead of exporting your surplus clean, renewable energy to the grid for a low credit, a home solar battery allows you to capture and store that excess energy on-site. You can then use it during peak evening hours to avoid higher utility charges entirely.
You can also lower the upfront cost of battery hardware by taking advantage of BC Hydro battery rebates (up to $5,000 for residential properties enrolled in the Peak Saver program).
Right-Sizing New Systems (For Future Solar Buyers)
For those planning to install solar panels under the new rules, system design strategy has completely changed. Everything now hinges on calculating exactly how much power your home consumes.
Historically, homeowners built massive, oversized arrays to cash in on large annual net metering credits. Under the new flat 10¢/kWh billing cycle credit, building a system larger than you need is no longer a viable financial strategy.
Work with your contractor to size your array to cover, but not exceed, your household’s baseline daylight electricity consumption. Sizing a system to closely match what you can use in real-time is the most effective way to drive down your energy costs.
Join the New Community Generation Service
If you live in a multi-family building, operate a commercial strata, or simply lack the suitable roof space to install solar panels directly on your property, BC Hydro’s brand-new Community Generation Service offers a highly innovative alternative.
This new tariff structure allows multiple neighbours, tenants, or businesses to collectively build, operate, and benefit from shared renewable generation facilities with a capacity limit of up to 2 Megawatts (MW).
Under the community model, a designated “Community Generator” (such as a strata corporation, cooperative, or local developer) hosts and maintains the shared array.
- The facility is designed to meet local energy demands, but any excess power delivered back into BC Hydro’s distribution system is valued at the standard rate of 10 cents per kWh.
- Instead of all energy credits going to a single account, the monetary value of that excess electricity is split among a designated list of “benefiting customers” (like individual strata unit owners).
- Based on an agreed-upon percentage, these credits are applied directly to each participant’s monthly bill.
You Can Still Generate Your Own Electricity—and Yes, It’s Still Way Cheaper Than No Solar
The transition from Rate Schedule 1289 to the new Self-Generation Service Rate (Schedule 2289) has understandably caused a shift in how residents of Abbotsford view solar. It is no longer about turning your rooftop into a mini-power generating facility designed to sell massive amounts of energy back to the utility. Instead, the focus has returned to the truest purpose of solar energy: self-consumption.
Despite the end of classic net metering, generating your own electricity remains one of the most reliable, long-term hedges against rising utility rates. It is still better to maintain your existing system or install new panels than to rely solely on the grid.
You’ll still save money on solar as long as you hire a licensed, local contractor like the Abbotsford Solar Installation team.
Frequently Asked Questions
Can I participate in Community Generation (RS 2290) if I already have solar panels on my roof?
No. To be registered as an eligible “benefiting customer” who receives shared billing credits from a community array, you cannot be taking service under the standard legacy Net Metering (RS 1289) or Self-Generation (RS 2289) tariffs. The community program is strictly designed to extend solar access to those who do not have their own individual generation systems.
How much power can commercial customers get in the new Community Generating system?
Under BC Hydro’s new Community Generation Service, participating commercial customers can be allocated a capacity limit of up to 100 kW each.
For context, the total size of the shared community generating facility has a maximum overall limit of 2 Megawatts (2 MW). This total system size is determined by the number and type of benefiting customers subscribed to it, allowing up to 100 kW for each commercial account and 24 kW for each residential account.
Do I physically need to remove solar panels from my roof to "downsize" under the new BC Hydro rules?
No, you do not need to physically tear panels off your roof to downsize. Instead, you can “virtually downsize” by having a certified contractor install a smart energy meter at your electrical panel that communicates directly with your solar inverter. This allows you to configure export-limiting programming, instantly throttling down your system’s solar output in real-time so that it only produces what your household is actively consuming.
If you do choose to physically remove panels (for example, during a roof repair), a licensed professional from Abbotsford Solar Installation must safely disconnect the hardware, cap the wiring, and formally submit a system modification form to BC Hydro to officially update your grid interconnection agreement with your new, reduced capacity.
