BC Hydro cuts solar payback rates, dropping credits from one-to-one to 10 cents per kilowatt
Starting today, households generating solar power will receive less compensation, a shift that West Vancouver MLA Jeremy Valeriote warns may discourage clean energy investment.
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BC Hydro changed how it compensates households that generate solar power as of Wednesday, July 1, marking a significant shift in incentives for residential renewable energy.
Under the old net metering system, homeowners received one-to-one credits for electricity they fed into the grid—meaning they got back exactly what they generated. Starting today, BC Hydro now pays 10 cents per kilowatt-hour for solar-generated power, while most residents pay 12 to 14 cents or more for the electricity they draw.
West Vancouver MLA Jeremy Valeriote, who represents the BC Green Caucus, expressed disappointment with the change, approved by the British Columbia Utilities Commission. "It discourages people from taking charge of their own household energy independence, investing in clean energy," he said. "Somebody's made a bunch of decisions on the old net metering system. They've invested money in solar panels, which is what we want people to do."
Valeriote warned the move sends the wrong message at a time when the province needs to electrify its economy. He noted that residents are charged 12 to 14 cents per kilowatt-hour while industrial rates for LNG facilities sit at just 5 to 6 cents—a subsidy to big business while solar investors lose their incentive.
The BCUC did grandfather existing solar owners into the old system for 10 years, but new installations or expanded systems will be subject to the lower rate. Valeriote believes the decision needs to be reconsidered with broader climate goals in mind, not just BC Hydro's economics.
