Riverside runs on Riverside Public Utilities (RPU), a city-owned municipal utility. That matters: RPU is exempt from California’s NEM 3.0, the rule that cut export credits for SCE, PG&E, and SDG&E customers. RPU runs its own net metering and credits exports at or near retail, so hot, sunny Riverside is one of California’s stronger rooftop-solar markets in 2026.
- Your utility is Riverside Public Utilities (RPU), a municipal utility owned by the City of Riverside. Because it is city-owned, it sits outside CPUC jurisdiction and runs its own solar rules (RPU Self-Generation Program).
- RPU is exempt from NEM 3.0. California’s Net Billing Tariff (NEM 3.0) applies only to the big investor-owned utilities, not to municipal utilities like RPU (CPUC Net Energy Metering).
- RPU runs its own net metering under its Electric Schedule NEM, and it publishes a Net Surplus Energy Compensation Rate effective January 1, 2026. Confirm current terms before you sign (RPU).
- California power is expensive. The statewide residential average is about 35.25 cents per kWh (EIA, April 2026), driven by the IOUs; RPU’s municipal rates run lower, so verify your own tier on your RPU bill.
- The 30% federal homeowner credit (Section 25D) ended for expenditures made after December 31, 2025 (IRS).
If you own a home in Riverside, this is how rooftop solar actually pays you back in 2026, told straight. Riverside sits in the Inland Empire, where the sun is strong and summers are hot, so a roof here makes a lot of power. The bigger story is your utility. Riverside is served by Riverside Public Utilities, a city-owned utility that plays by different rules than the big California power companies. That one fact changes the solar math in your favor. This page covers who your utility is, why NEM 3.0 does not apply to you, what Riverside roofs produce, and how to tell if your home is a good fit.
Using NREL PVWatts and the current EIA rate, MySolarFY estimates a typical 7 kW rooftop system in Riverside (ZIP 92501) produces about 11,828 kWh a year (NREL PVWatts v8), thanks to strong Inland Empire sun. At a typical RPU residential rate near 15 to 16 cents per kWh that offsets roughly $1,800 a year, and more in the higher usage tiers; verify your own rate on your RPU bill. Because RPU credits exports at or near retail rather than the low NEM 3.0 export rate that SCE, PG&E, and SDG&E customers get, more of that production keeps its value.
Riverside solar at a glance
Here is the short version of what drives your payback in Riverside in 2026. Every figure below is sourced, and the utility and net-metering lines are the ones that set Riverside apart from the rest of California.
| Detail | What to know (2026) |
|---|---|
| Your utility | Riverside Public Utilities (RPU), a municipal utility owned by the City of Riverside |
| NEM 3.0? | No. NEM 3.0 (the Net Billing Tariff) applies to the IOUs, not to municipal utilities like RPU |
| Export program | RPU’s own net metering (Electric Schedule NEM), crediting exports at or near retail; verify current terms |
| Sun resource | Excellent; a 7 kW Riverside (92501) system makes about 11,828 kWh a year (PVWatts) |
| Statewide rate | CA residential average about 35.25 cents per kWh (EIA, April 2026); RPU’s municipal rates run lower |
| System sizing | RPU’s self-generation program lets you build up to 150% of your historic annual usage (verify) |
| Federal credit | The 30% residential credit (Section 25D) ended for expenditures after December 31, 2025 |
Why Riverside is different: a municipal utility, not an IOU
This is the most important thing to understand about Riverside solar in 2026. Most of California is served by big investor-owned utilities, and those customers are under NEM 3.0, the Net Billing Tariff that pays a low avoided-cost rate for the power you export instead of the retail rate. Riverside is not one of those places. Your utility is Riverside Public Utilities, a city-owned municipal utility, and because it is city-owned it sits outside the California Public Utilities Commission’s jurisdiction (CPUC Net Energy Metering). NEM 3.0 simply does not apply to RPU customers.
What that means in plain terms: the export cut that reshaped the math for SCE, PG&E, and SDG&E customers does not hit you. If a neighbor across a utility boundary is on Southern California Edison, they are living under NEM 3.0 rules; you are not. For the contrast, see how the IOU rules work in our guide to California NEM 3.0 net billing and our page on Southern California Edison solar. This is the single biggest reason Riverside remains one of the stronger rooftop-solar markets in the state.
How RPU credits your solar
RPU runs its own net metering program. Under RPU’s Electric Schedule NEM, your meter measures the difference between the power you pull from the grid and the power your system sends back, and RPU credits exports at or near its retail energy rate rather than the low NEM 3.0 export rate (RPU Self-Generation Program). RPU also publishes a Net Surplus Energy Compensation Rate under Schedule NEM, effective January 1, 2026, for any surplus you produce over a true-up period. These terms are set by the City of Riverside and change over time, so confirm the current rate and program details with RPU before you sign. For the mechanics of how export credits work in general, see how net metering credits your solar exports.
RPU’s self-generation program also lets you size a system up to about 150% of your historic annual usage, which gives most homes room to cover their full load (verify your own limit with RPU). Customers already on an existing NEM agreement are generally not affected by program changes, so if you go solar now, get the terms that apply to new applicants in writing.
Hot, sunny, and high-production: the Inland Empire advantage
Riverside’s climate is built for solar. The Inland Empire gets strong, consistent sun, and hot summers mean big air-conditioning bills that a rooftop system can offset. A 7 kW system at ZIP 92501 produces about 11,828 kWh a year in our PVWatts estimate, which is a lot of usable power for a single home. Because RPU credits exports near retail, more of that production holds its value, whether you use it in the moment or send it back. To see how offsetting your own usage lowers the bill, read how solar lowers your electricity bill.
Permitting in Riverside and the Inland Empire
Rooftop solar in Riverside goes through city building permits plus RPU interconnection, and you will typically need plan approval, installation, an inspection, and permission to operate before your system switches on. Timelines vary by workload and by whether your home needs an electrical panel upgrade, which is common on older Inland Empire houses. A licensed installer that works in Riverside regularly will know the local process. For a broader look at the regional process, see our guide to solar permitting in Southern California.
What happened to the tax credits
The federal homeowner credit has ended, so do not count on it. The 30% Residential Clean Energy Credit (Section 25D) ended for expenditures made after December 31, 2025 under the One Big Beautiful Bill Act, which means a Riverside homeowner who buys solar with cash or a loan in 2026 cannot claim it (IRS). One federal credit still exists but is not yours to claim: Section 48E is a commercial credit that the business owning a leased or PPA system claims, not the homeowner. For the full timeline, see what the federal solar tax credit change means in 2026.
Is a battery worth it in Riverside?
Because RPU credits exports at or near retail, the case for a battery in Riverside is different than it is under NEM 3.0. In IOU territory, low export rates make storing your own power much more valuable than selling it. Under RPU’s near-retail netting, the export penalty is smaller, so a battery here is more about backup during heat waves and grid outages than about rescuing the export math. It still adds up-front cost and is not right for every home, so treat it as a payback and resilience question, not a default. For a framework on running those numbers, see our guide on whether solar panels are worth it.
How to tell if your Riverside home is a good fit
A few things make the difference between a roof that pays off and one that does not:
- A roof with decent sun exposure and enough space for the system your usage needs. South and west faces do well in Riverside’s climate.
- An electrical panel that can handle solar, or a clear quote for the upgrade if it cannot.
- Confirmation that you are an RPU customer and clarity on the current RPU net-metering and self-generation terms.
- A written production estimate and a transparent quote you can compare. For a checklist, see the right questions to ask a solar installer.
MySolarFY matches you with licensed installers that serve Riverside so you can compare real local quotes side by side, with no obligation. For the statewide picture, see our California solar hub, and for the full national view see our solar incentives by state index.
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Frequently asked questions
Does Riverside have NEM 3.0? No. NEM 3.0, California’s Net Billing Tariff, applies only to the investor-owned utilities like SCE, PG&E, and SDG&E. Riverside is served by Riverside Public Utilities, a city-owned municipal utility that sits outside CPUC jurisdiction and runs its own net metering, so the NEM 3.0 export cut does not apply to RPU customers (CPUC).
Is Riverside Public Utilities exempt from net-metering changes? RPU is not bound by NEM 3.0 because it is a municipal utility. It sets its own net-metering and self-generation terms, currently crediting exports at or near retail, with a Net Surplus Energy Compensation Rate under Schedule NEM effective January 1, 2026. RPU can and does update its own program over time, so confirm the current terms with RPU before you sign (RPU).
What is the electric rate in Riverside, CA? California’s statewide residential average is about 35.25 cents per kWh (EIA, April 2026), but that figure is driven by the big investor-owned utilities. RPU’s municipal rates run lower than the IOUs, and they are tiered by usage, so check your own RPU bill for the rate that applies to you.
Is solar worth it in Riverside, CA? For many homes, yes. Riverside has strong Inland Empire sun, a 7 kW roof produces about 11,828 kWh a year in our PVWatts estimate, and RPU credits exports at or near retail rather than the low NEM 3.0 rate. The federal credit ended after December 31, 2025, so run your own numbers with a written production estimate and a real RPU rate before you commit.
Who is my utility for solar in Riverside? For homes inside the city, it is Riverside Public Utilities, the city-owned municipal utility that runs both your electric service and your solar interconnection. Some addresses near the city edge may be served by Southern California Edison instead, which is under NEM 3.0, so check your electric bill to confirm which utility you are on.
Reviewed by the MySolarFY team. Figures were verified against the linked Riverside Public Utilities, CPUC, EIA, NREL, and IRS sources as of August 2026. RPU net-metering terms, self-generation rules, rates, and export credits are set by the City of Riverside and change over time, so confirm current terms with RPU 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. 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, export credits, and rates vary and are not guaranteed. See our full disclaimer.
