On January 1, 2026, every new solar application in Burbank entered a new program. Burbank Water and Power replaced its longstanding Net Energy Metering (NEM) tariff with a Solar Net Billing program — a change the Burbank City Council approved on January 14, 2025 and set in motion for a full year before it took effect. BWP's program is not as severe a change as what SCE customers faced when the CPUC imposed NEM 3.0 in 2023. Burbank is a municipal utility that sets its own rules through the City Council, not Sacramento regulators. That independence produced a program with genuine advantages, including an uncapped system size allowance and a battery rebate that, for most 2026 buyers, tops out at $530 per kWh. Here is what you need to know before signing a contract.
What changed in Burbank on January 1, 2026
Under the old NEM program, BWP credited solar customers at the full retail rate for every kilowatt-hour exported to the grid. Under Net Billing, that full retail credit is gone. New solar customers are now compensated at BWP's avoided cost of energy (ACOE) — the wholesale cost BWP would have paid to source that electricity elsewhere. The ACOE is time-varying, higher during peak demand and lower during surplus supply periods. Credits apply directly to your next bill.
The number that matters most is the annual cash-out rate: if you accumulate more bill credits than you can use, BWP pays out that surplus at $0.0455 per kWh, per the January 2026 BWP Solar Consumer Protection Guide. BWP's current residential retail rate runs from $0.1800/kWh for the first 300 kWh to $0.2782/kWh above that threshold. Exporting surplus and cashing it out earns you roughly 16 cents on every dollar of retail value — and that math is the engine driving the case for battery storage.
Who is grandfathered — and what that actually means
If your solar system was already interconnected and operating under BWP's NEM program before January 1, 2026, your NEM rate structure is preserved. Per BWP's own program page: "If you are already a part of Burbank's solar community under the existing net energy metering system, your rates will not change." That is meaningful protection.
What grandfathering does not protect is underlying rate increases. BWP rates have risen in the 2024–2026 period, and those increases apply to grandfathered NEM customers as they apply to everyone on the BWP grid. Your tariff structure is locked; your bill is not immune to rate changes.
The permit cutoff is the dividing line. Submit your solar permit application before January 1, 2026 — you are on NEM. Apply on or after that date, you are on Net Billing. There is no path to grandfathering for new applicants.
How BWP's Net Billing actually works
The mechanics are straightforward. Your solar system first powers your home directly. Any surplus flows to the BWP grid and earns a bill credit at the time-varying ACOE rate — higher during peak demand hours, lower when the grid has surplus supply. Credits accumulate on your account and offset future bills.
The $0.0455/kWh cash-out rate and when to use it
At the end of your service period — or annually if you choose — any remaining credits can be cashed out at $0.0455 per kWh. BWP explicitly recommends against annual cash-out, noting in the January 2026 Consumer Protection Guide that "credits have a higher value when they are used to offset future bills." In plain terms: a bill credit worth $0.28 in avoided electricity cost should not be surrendered for a $0.0455 cash payment unless you have no other choice.
"Any excess credits can be cashed out for a value of $0.0455 annually or at the end of your service period. Because credits have a higher value when they are used to offset future bills, BWP recommends that customers cash out their credits at the end of their service period instead of annually." — BWP Solar Consumer Protection Guide, January 2026, p. 12
System sizing strategy changes under Net Billing. Under NEM, oversizing to export generously paid off because every exported kWh earned a near-retail credit. Under Net Billing, exported surplus you cash out earns far less. A well-designed system now maximizes self-consumption — matching panel capacity to your load profile, adding battery storage to shift surplus to evening hours, and sizing for future needs (EVs, heat pumps) rather than today's baseline usage.
The 5 MW cap and the end of the annual-usage rule
One genuinely positive change is the elimination of the old annual usage cap. Under NEM, your solar system's expected annual output could not exceed your previous 12 months of electricity consumption — which blocked homeowners from sizing up for an EV they planned to add or a heat pump they were planning to install. Under Net Billing, that restriction is gone. BWP now supports residential systems up to 5 megawatts, with the explicit note that "customers can oversize systems to accommodate future electric vehicles." The practical ceiling for most homeowners is roof space and budget, not BWP policy.
Why batteries matter even more under BWP's Net Billing
The arithmetic of Net Billing makes battery storage more compelling than it was under NEM. Power you self-consume is worth $0.18–$0.28 per kWh in avoided retail cost. Power you export and ultimately cash out is worth $0.0455/kWh. A battery that shifts daytime solar generation into your evening load is now worth five to six times more than sending that same energy to the grid.
BWP's battery rebate: $275 or $530 per kWh — and why $530 applies to most 2026 buyers
BWP runs a battery storage rebate program with two tiers. Customers who receive the federal Investment Tax Credit (ITC) qualify for $275 per kWh of installed battery capacity. Customers who do not receive the federal ITC qualify for $530 per kWh, up to a maximum rebate of $27,500 (capped at 100 kWh per site).
Since the federal residential ITC expired at the end of 2025 — per H.R. 1, signed July 4, 2025 — the higher $530/kWh BWP rebate now applies to nearly all 2026 customers installing customer-owned systems. Consult a tax professional regarding any specific tax credits applicable to your installation type, as tax situations vary.
In dollar terms: a 10 kWh battery could qualify for a $5,300 rebate directly from BWP; a 20 kWh system, $10,600. To qualify, the battery must be paired with solar, rated at least 5 kWh, and must discharge at least 80% of stored energy daily during BWP's peak hours (4–7 p.m.), with a 10-year service requirement. Approved brands include Enphase IQ Battery, Franklin WH, Sonnen, Eguana, and SolarEdge. Our team handles the full battery storage installation process, including BWP rebate paperwork.
Under Net Billing, the gap between what you earn for exported power ($0.0455/kWh cash-out) and what you pay for imported power ($0.18–$0.28/kWh) makes every kilowatt-hour you can store and self-consume worth roughly five to six times more than sending it to the grid.
Burbank vs. Pasadena vs. SCE: how the three SoCal solar approaches compare
SCE is an investor-owned utility regulated by the CPUC. In April 2023, the CPUC imposed its Net Billing Tariff (NEM 3.0) on all new SCE solar customers, cutting export credits sharply from NEM 2.0 levels. SCE grandfathers prior NEM 1.0 and NEM 2.0 customers for 20 years from their permission-to-operate date. For more context, see our post on NEM 3.0 and battery storage in Southern California and our LADWP vs. SCE solar comparison.
Pasadena Water and Power (PWP) is also a municipal utility exempt from the CPUC's Net Billing Tariff. Rather than a tariff transition, PWP launched a direct cash rebate pilot in April 2026: $0.60/W for solar panels and $350/kWh for battery storage, with higher tiers for income-qualified customers. It's a different kind of program — a time-limited rebate rather than a permanent tariff structure — but it makes the same broader point: Pasadena and Burbank homeowners are operating in a different solar environment than their neighbors in SCE territory. For the full breakdown, read our post on Pasadena Water and Power's solar and battery rebate program.
BWP set its own rules through the Burbank City Council, independent of CPUC oversight. Burbank homeowners were not subject to the 2023 NEM 3.0 transition. BWP's Net Billing, while less generous than the old NEM tariff, rewards a battery-paired, self-consumption-focused system — which is exactly the design that makes the most financial sense in 2026.
What this means for you
If you own a home in Burbank and have not yet applied for a solar permit, you are entering a Net Billing program — that is the permanent reality for new applicants from January 1, 2026 onward. The program is workable, and the financial case for solar in Burbank remains strong. But the design decisions that maximize your return have changed.
Here is what we recommend thinking through before you sign a contract:
Size for self-consumption, not export. Export credits are worth a fraction of retail rate. A system sized to cover your actual load — including future EV charging or appliance electrification — returns far more than one optimized for grid export.
Pair solar with a battery. BWP's $530/kWh rebate (applicable to most 2026 buyers now that the federal residential ITC has expired) and the self-consumption premium together make this the strongest case for storage Burbank homeowners have seen.
Size for your future energy needs. The annual-usage cap is gone. If an EV or heat pump is in your 2–3 year plan, factor that load into your system size today.
Work with an installer who knows BWP's process. BWP's 8-step interconnection requires coordination between the City of Burbank Building Division and BWP's engineering team. Your system cannot turn on until BWP issues written approval. Experience with that process matters.
At Anca Solar, we install solar panels and battery systems across Los Angeles, Orange, and Ventura Counties. We know BWP's Net Billing program, its interconnection process, and the battery rebate application requirements. If you are a Burbank homeowner ready to run the numbers on a system designed for the 2026 rules, we would be glad to put together a no-pressure site assessment.
Reach out to our team at ancasolar.com/contact to schedule a free consultation. We are licensed under CSLB #873768 and located at 4519 Westdale Ave, Eagle Rock, CA 90041 — right here in the San Gabriel Valley. You can also learn more about solar panel installation in Los Angeles or our company and how we work.
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