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• Introduction
• So what does this mean?
• Bigger isn't always better
• What about the rebate?
• Don't forget the approval process
• Conclusion

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Introduction

I've spent most of my years working with off-grid solar systems. That's where a lot of my experience has been, designing systems that have to produce, store and manage their own power because there is no grid to fall back on.

But as we're doing more grid-connected systems, I'm paying a lot more attention to what's happening with BC Hydro and the rules around grid-tied solar.

And there have been some changes.

If you've been thinking about installing solar in British Columbia, there's an important one you should know about. On July 1, 2026, BC Hydro closed its old Net Metering Rate 1289 to new customers. New customers connecting solar to the BC Hydro grid now fall under the new Self-Generation Rate 2289. At first, that might sound like nothing more than a change in numbers. It isn't.

The way excess solar electricity is treated has changed, and that means the way we should think about designing a solar system has changed too.

That's what I want to look at in this article not just what changed, but why it matters when you're deciding what kind of solar system makes sense for your home.

So what does this mean?

Under the old net-metering system, excess electricity could build up as credits that could be used against future electricity consumption. Under the new Rate 2289, BC Hydro pays for excess electricity sent to the grid at 10 cents per kWh each billing cycle. That changes the conversation. Instead of simply asking:

"How much solar can I put on my roof?"

we should be asking:

"How much of that solar electricity can I actually use?"

That's an important difference.

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Bigger isn't always better

For years, one of the simplest ways to explain solar was to install enough panels to produce as much electricity as possible and let the grid handle the rest.

But if you're a new BC Hydro customer today, it makes more sense to look closely at how your home actually uses electricity. When are you using the most power? Are you home during the day? Do you have electric heat, a heat pump, an EV, a shop or other large loads?

What will your electricity use look like five or ten years from now?Those questions can help determine how much solar makes sense. And this is where batteries become part of the conversation.

A battery can store some of the solar energy produced during the day and make it available later when your home needs it. That doesn't mean everyone needs batteries. Batteries cost money, and they need to make financial and practical sense for the particular home. But they are another tool we can use to make better use of the energy a solar system produces.

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What about the rebate?

There is still help available.

BC Hydro's current residential solar rebate is $1,000 per kW, up to $5,000, subject to the program's eligibility and cost requirements. There's an important change here too: since June 1, 2026, rebate-eligible solar and battery installations must be completed by a Home Performance Contractor Network, or HPCN, member. So if you're getting quotes, don't just ask how much the system costs.

Ask whether the installer is an HPCN member and whether your project qualifies for the rebate. And remember, the rebate shouldn't be the reason you install solar.

A rebate can improve the economics of a good system. It doesn't turn a poorly designed system into a good one.

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Don't forget the approval process

Another important point is that BC Hydro approval needs to be part of the process.

You don't want to install a system and then try to figure out the grid connection afterward.

The utility requirements, electrical permits and local building requirements all need to be considered before the project is built.

This is especially important because not every solar project in BC is the same. A BC Hydro customer may have a different process than someone served by FortisBC, and agricultural properties can have additional considerations.

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Conclusion

The biggest change isn't really the number 1289 becoming 2289. The bigger change is how we should think about solar. The goal shouldn't be to put the maximum number of panels on a roof. The goal should be to design an energy system that works with the way you actually live.

Your electricity use, the size of your solar array, the amount of energy you can use directly, the possibility of battery storage, the utility rate, rebates and installation requirements all need to be considered together.

And that's something I think is important for anyone considering solar: Don't start with the equipment. Start with the problem you're trying to solve.

The biggest mistake is designing the system first and asking the questions afterward.

Education first. Sales second.

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​Educational information only: This article is provided for general educational purposes and is not a substitute for site-specific professional advice. Electrical, building, safety, permitting, and equipment requirements can vary by project and location. Always verify requirements for your specific installation.

​Read our full Educational Disclaimer​

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