California homeowner upset PG&E would slash credits 75% for adding more panels

A California homeowner says plans for a second EV and more electric appliances are colliding with the economics of expanding the rooftop solar system they installed in 2021 and have already paid off.

They say PG&E rules would require a move from California's older net metering framework to a newer one that reduces export compensation by about 75%.

What's happening?

In a recent Reddit post in the r/solar community, the homeowner said they want to add roughly 3 kWh of capacity to cover rising demand from a second EV, an electric dryer, a heat pump replacing a gas heater, and, eventually, a heat-pump water heater and induction stove.

Their concern is that even a modification to the existing system would shift them from NEM 2.0 to NEM 3.0. They said, under the NEM 3.0, PG&E will pay them "75% less for power that we export during the day, and then we pay higher retail rates in the evenings."

The homeowner also said an installer told them that another option — adding non-export panels — would mean installing another Powerwall and another gateway, something PG&E reportedly seldom approves.

Why does it matter?

The dispute points to a wider challenge in California's clean-energy shift: people may be ready to electrify more of their homes and transportation, but the rules around utility programs can make solar expansions far less practical.

In this case, the homeowner had already done what many energy experts recommend by installing solar, paying it off, and using it as a base for cleaner household upgrades. Moving more of daily life onto electricity — another EV, a heat pump, an electric dryer, and later an induction stove and heat-pump water heater — could reduce gasoline use, cut reliance on fossil gas, and lower household energy costs.

If you want to make the switch to solar, EnergySage's free tools can help connect you with vetted, local installers and can help you save up to $10,000 on your installation. If buying panels isn't in your budget, Palmetto's $0 down LightReach solar program can help you save up to 20 percent on your energy bills. 

What are people saying?

Many commenters shared the homeowner's frustration. 

"This is one of the biggest frustrations with California solar policy right now," wrote one commenter. "A lot of homeowners made good-faith investments based on future electrification plans, only to find out later that expanding their [system] comes with major financial [penalties]."

The OP responded, saying, "Yep. In my case the investment has paid off VERY well due to the increase in Gas and Electricity prices."

Others pointed to possible workarounds, including a separate off-grid solar-and-battery system for EV charging or a larger battery instead of more rooftop panels.

"I would recommend considering a [sizable] home battery to store excess energy rather than sending it to the grid," said one user, to which the OP responded, "Considered that. It's not $10K. It's a LOT more. The point being that I should be able to extend the current system and PG$E shouldn't have a say."

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