Anaheim is served by Anaheim Public Utilities, a city-owned municipal utility, so rooftop solar here is exempt from California’s NEM 3.0. APU runs its own Net Energy Metering 2.0 program and credits exported power on a wholesale, avoided-cost basis it updates each year, so confirm the current export rate with APU. APU also offers a home battery rebate of up to $1,500 per household. The 30% federal 25D homeowner credit ended December 31, 2025.
If your electric bill comes from Anaheim Public Utilities, the way rooftop solar pays you back is different from most of Southern California, and that difference matters. Anaheim is one of the few Orange County cities with its own city-owned electric utility. APU serves the city of Anaheim, and because it is a publicly owned municipal utility rather than an investor-owned one, it sets its own solar rules and does not fall under California’s NEM 3.0 net billing tariff (Anaheim Public Utilities, Solar Energy and Net Metering). That one fact is why solar in Anaheim works differently from neighboring cities on Southern California Edison. This page explains APU’s net metering, its home battery rebate, how to interconnect through Anaheim, and how to tell if your roof is a good fit.
Anaheim solar at a glance
APU runs its own crediting and interconnection process. Because it is a municipal utility, its solar tariff is set by the City of Anaheim, not the California Public Utilities Commission, so the terms below come straight from APU.
| Detail | What to know in Anaheim |
|---|---|
| Utility | Anaheim Public Utilities (APU), the city-owned municipal electric utility |
| Service area | The city of Anaheim, in Orange County |
| NEM 3.0 status | Exempt. As a municipal utility, APU is outside the CPUC net billing tariff that governs SCE, PG&E, and SDG&E |
| Solar crediting program | APU Net Energy Metering 2.0, in place for new solar since January 1, 2021 |
| Export credit | Net excess exports credited on a wholesale, avoided-cost basis APU updates each year; confirm the current rate with APU |
| Battery rebate | Up to $1,500 per household for applications received on or after July 1, 2026 |
| Source | APU Net Energy Metering 2.0 |
What a typical Anaheim system produces. According to MySolarFY’s own analysis (August 2026), a typical 7 kW rooftop system in Anaheim produces about 11,600 kWh a year (NREL PVWatts, ZIP 92805). At a representative APU residential energy price near 17 cents per kWh (APU residential rates), that is roughly $1,950 of grid electricity your panels would offset in a year. Worth noting: California’s statewide residential average is about 33.25 cents per kWh (EIA, May 2026), but that number is driven by the big investor-owned utilities. APU’s municipal rates run well below the state average, which is a defining feature of going solar in Anaheim. Your own number depends on your roof, shade, rate plan, and usage, so treat this as a planning estimate and get a site-specific production figure from an installer.
How Anaheim net metering works now: APU NEM 2.0
APU credits new rooftop solar under its own Net Energy Metering 2.0 program, and because APU is a municipal utility it is exempt from California’s NEM 3.0 net billing. This is the key difference from cities next door. California’s investor-owned utilities, including Southern California Edison across much of Orange County, moved to NEM 3.0 net billing in 2023, which values exports well below the retail rate and pushes homeowners toward batteries (CPUC net energy metering). APU sits outside CPUC jurisdiction, so it never adopted NEM 3.0. Instead, APU placed new solar customers on its NEM 2.0 program starting January 1, 2021, and under that program it credits the net excess electricity you export to the grid on a wholesale, avoided-cost basis that APU recalculates each year. The most recent posted APU excess-energy rate schedule expired on June 30, 2026, so ask APU for the current export credit before you model your payback (APU NEM 2.0 rates). For the mechanics of export credits in general, see how net metering credits your solar exports.
| Anaheim (APU, municipal) | SCE / PG&E / SDG&E (investor-owned) |
|---|---|
| Exempt from NEM 3.0; APU sets its own NEM 2.0 solar tariff | Under the CPUC NEM 3.0 net billing tariff since 2023 |
| Net excess exports credited on a wholesale, avoided-cost basis, updated yearly | Exports valued on avoided-cost rates that vary by hour and season |
| Lower underlying municipal rates than the CA average | Among the highest retail rates in the country |
| A home battery rebate of up to $1,500 per household | No equivalent utility battery rebate for most IOU customers |
Because APU credits your exports below its retail price, the smart move in Anaheim is to use as much of your own solar as you can during the day, rather than sending it all to the grid. A battery helps by storing midday production for evening use, and APU’s rebate lowers the cost of adding one. To see how the bill credit lowers your monthly cost, read how solar lowers your electricity bill, and to weigh payback under APU’s export credit, see the financial case for whether solar panels are worth it.
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Anaheim’s home battery rebate
APU offers a residential energy storage rebate for Anaheim homeowners who add a qualifying home battery. For applications received on or after July 1, 2026, the rebate is up to $1,500 per household, down from a previous level of up to $3,000 (APU Battery Storage). This is a battery rebate, not a rebate on the solar panels themselves, and it pairs naturally with a rooftop system because APU credits your exports below retail. Program funding, eligibility, and the rebate amount change, so confirm the current terms and available funds with APU before you count on it.
What changed federally, and what it means for Anaheim homeowners
The 30% federal homeowner solar credit ended after December 31, 2025. APU’s NEM 2.0 program and its battery rebate are separate city programs and did not change with it. The federal Residential Clean Energy Credit (Section 25D) ended for expenditures made after that date, under the One Big Beautiful Bill Act, so an Anaheim homeowner who buys solar with cash or a loan in 2026 cannot claim it (IRS OBBB FAQ; SEIA). A separate commercial credit, Section 48E, is claimed by the business that owns a leased or PPA system, not by the homeowner, so on a lease or PPA you do not file for a federal credit yourself. The 25D homeowner credit, by contrast, ended after December 31, 2025. For the full timeline, see what the federal solar tax credit change means in 2026.
How to connect solar to APU
Connecting a home system in Anaheim follows a set order, and the key rule is that you cannot turn the system on until APU grants permission to operate. The general path is:
- Interconnection application. You or your installer file an APU interconnection application for your solar and any battery storage.
- Review and agreement. APU reviews the application and returns the interconnection and NEM 2.0 agreement to sign.
- Permit and install. You pull the required City of Anaheim building and electrical permits, and the system is installed and passes city inspection.
- Meter set. APU installs or reconfigures a bidirectional meter and places your account on NEM 2.0.
- Permission to operate. APU issues permission to operate. The system may not run on the grid before this.
A licensed installer normally manages this whole process for you, and the details and fees can change, so confirm the current APU interconnection, NEM 2.0, and permit terms before you commit. For the questions to ask, see the right questions to ask a solar installer. You can also compare more utilities in our Solar by Utility guides, and see statewide context on our California solar hub.
How to choose a solar installer in Anaheim
Orange County has an active solar market, so you have licensed installers to compare. Rather than chasing a “best” list, screen any installer against objective criteria:
- NABCEP certification, the industry’s professional standard for PV installers.
- Proper California licensing (CSLB) and the required City of Anaheim building and electrical permits.
- A clear workmanship and equipment warranty in writing.
- Real experience with APU interconnection and NEM 2.0, so the paperwork and permission to operate go smoothly.
- A written production estimate and a transparent quote that is honest about APU’s wholesale export credit and how a battery would change your payback.
MySolarFY matches you with licensed installers that serve your area so you can compare real local quotes side by side, with no obligation.
Frequently asked questions
Is Anaheim under California’s NEM 3.0 net billing?
No. Anaheim is served by Anaheim Public Utilities, a city-owned municipal utility that sits outside California Public Utilities Commission jurisdiction, so it never adopted NEM 3.0. NEM 3.0 net billing applies to the state’s investor-owned utilities, including Southern California Edison in much of Orange County. APU instead credits new rooftop solar under its own Net Energy Metering 2.0 program, so the export rules in Anaheim are set by the city, not the CPUC.
How does APU credit my exported solar in 2026?
APU places new solar customers on its NEM 2.0 program and credits the net excess electricity you send to the grid on a wholesale, avoided-cost basis that it updates each year. Because that credit is below APU’s retail price, using your solar as you make it, or storing it in a battery, is worth more than exporting it. APU’s most recent posted excess-energy rate schedule expired June 30, 2026, so confirm the current export rate with APU before you decide.
Does Anaheim offer a solar or battery rebate?
APU offers a home battery storage rebate of up to $1,500 per household for applications received on or after July 1, 2026, reduced from a previous level of up to $3,000. It is a rebate on qualifying battery storage, not on the solar panels. Funding and eligibility change, so confirm the current terms and available funds directly with APU before you rely on it.
What happened to the federal solar tax credit?
The 30% federal Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025, under the One Big Beautiful Bill Act. An Anaheim homeowner who buys solar in 2026 with cash or a loan cannot claim it. A separate commercial credit (Section 48E) can apply to leased and PPA systems, but the business that owns the system claims it, not the homeowner. APU’s NEM 2.0 program and battery rebate were not affected by the federal change.
Do I need a battery to go solar in Anaheim?
No, but a battery is often worth considering. Because APU credits your exports below its retail rate, storing your midday solar to use in the evening is worth more than exporting it, and APU’s battery rebate lowers the cost of adding storage. Whether a battery pencils out depends on your usage and budget, so ask your installer to model both with and without it.
Do I qualify for APU’s solar programs if I lease or sign a PPA?
NEM 2.0 crediting follows your APU account, but on a lease or PPA the company that owns the panels typically keeps the incentives, while your benefit is a lower or fixed power price with no up-front cost. If you want the export credit and any tax benefits in your own name, owning the system through cash or a loan is the path that captures them.
Reviewed by the MySolarFY team. Figures were verified against the linked Anaheim Public Utilities, California Public Utilities Commission, EIA, NREL PVWatts, IRS, and SEIA sources as of August 2026. APU’s NEM 2.0 export credit, battery rebate, and residential rates all change over time, so confirm current terms with APU before you decide. MySolarFY does not provide tax or financial advice; consult a licensed professional about your own situation. Learn more about the MySolarFY team and how we work.
MySolarFY is a free service that matches homeowners with licensed solar installers. We are not an installer, financing company, or government program. “No up-front cost” refers to qualifying lease or PPA financing, where eligible homeowners may have no out-of-pocket cost at installation. Lease and PPA terms typically run 20 to 25 years, may include an annual price escalator, and total payments may exceed the cost of a cash purchase; on a lease or PPA the incentives and bill credits often go to the company that owns the system, not the homeowner. Homeowners do not get the federal residential credit that ended after December 31, 2025. Solar panels are not free and monthly payments apply. Eligibility, savings, incentives, and rates vary and are not guaranteed. See our full disclaimer.
