Burbank council approves shift from net‑energy metering to time‑of‑use ‘net billing’ for new solar customers

Burbank City Council voted Jan. 14 to replace the city’s long‑standing net energy metering (NEM 1.0) program with a new solar net‑billing structure for customers who install systems after the new program’s launch.

The change shifts the compensation method for exported rooftop solar from a full‑retail kilowatt‑hour credit to a dollar‑based payment tied to the utility’s avoided cost of energy (ACOE), with time‑of‑use (TOU) periods that vary by season and hour. Burbank Water and Power (BWP) staff said existing, interconnected solar systems will be grandfathered into the current NEM rules for up to 20 years unless the owner expands the system or transfers the interconnection (for example, a property sale); new interconnections after the program launch will be enrolled in the net‑billing structure.

Why it matters: The decision is intended to align compensation with BWP’s actual avoided generation costs and to encourage self‑consumption, system sizing for future electrification (BWP will allow up to 150% of a customer’s prior 12‑month use in many cases) and adoption of battery storage. Staff presented a modeled payback difference — roughly six…