Skip to content
Check my home
Black solar panels on a red clay tile roof under a blue sky.

Not a utility. Not a government agency.

Does NEM 2.0 transfer when you sell your home in California?

Last reviewed November 2, 2026. Sources at the end.

Yes. If a California home already has the older NEM plan, it usually stays with the solar system when the home sells. SDG&E says the system does not lose its legacy status when it is transferred, if it stays at the same home. The clock does not restartLegacy period stays with the system when the home sellsWhat happens to NEM 2.0 when the home is soldIf you buy a home that already has NEM 2.0 solar, the plan comes with it for the rest of its 20 years. The clock does not restart. If you add more than 10% (or 1 kW) of panels, the new panels, or the whole system, move to a newer plan.SDG&E, Schedule NEM-ST (NEM 2.0 tariff), Special Condition 10.b; PG&E Schedule NEM2 SC 8.c; CPUC D.14-03-041 OP 5SC 10, NEM-ST Grandfathering Provisions, b) Ownership Transferability; also SC 10.a (System Modifications) and D.14-03-041 OP 3Verified Oct 9, 2026.

1. Does NEM 2.0 stay with the house?

Usually, yes. The SDG&E tariff says a system that has the legacy period does not lose it when it is transferred to a new owner, operator or account. The system must stay at its first site. If someone moves it to a new site, SDG&E treats that as a new install.

That means the plan is tied to the solar system at the home, not just to the first owner. The new owner gets the rest of the original legacy period. CPUC says the older net metering plans last 20 years from first connection20 yearsNEM 1.0 and NEM 2.0 legacy periodNEM 1.0 and 2.0 customers keep their plan for 20 years from when their system was first turned on. Rates can still change during that time.CPUC, Net Energy Metering and Net Billing page; D.14-03-041 OP 1; D.16-01-044 sec. 2.15Net Energy Metering section; Regulatory Documents listVerified Oct 9, 2026.

2. What can make the old plan end?

The main risk is changing the system too much. The fact bank says the old plan stays only if the system stays at its first site and is not made larger by more than the greater of 10% of its original size or 1 kWLegacy period stays with the system when the home sellsWhat happens to NEM 2.0 when the home is soldIf you buy a home that already has NEM 2.0 solar, the plan comes with it for the rest of its 20 years. The clock does not restart. If you add more than 10% (or 1 kW) of panels, the new panels, or the whole system, move to a newer plan.SDG&E, Schedule NEM-ST (NEM 2.0 tariff), Special Condition 10.b; PG&E Schedule NEM2 SC 8.c; CPUC D.14-03-041 OP 5SC 10, NEM-ST Grandfathering Provisions, b) Ownership Transferability; also SC 10.a (System Modifications) and D.14-03-041 OP 3Verified Oct 9, 2026.

So a buyer should ask for the permission-to-operate date and the system size before closing. Those papers show how much time is left. They also show the starting size. That matters if the buyer wants more panels later.

3. Did California pass a bill to end it at sale?

No. The bill people ask about, AB 942 never became lawNot law. Home-sale NEM part cut Jul 17, 2025AB 942 (2025): bill on NEM after a home saleA 2025 bill would have ended NEM for people who buy a home with solar. That part was cut on Jul 17, 2025, and the bill never became law.California Legislative Information, AB-942 bill status, history and text (amended in Senate July 17, 2025)Bill Status and History; title and digest of 07/17/25 versionVerified Oct 9, 2026. Its home-sale language was cut. The bill then became about a different topic.

Old web pages and social posts may still say the rule changed. The current source says the opposite: SDG&E keeps the legacy status when the system transfers and stays in place.

4. What should a buyer check?

Ask the seller or agent for the solar interconnection papers. Look for the first turn-on date, the utility account, the system size and any later panel changes.

Then compare those papers with the utility bill. A home can have solar and still pay charges each month. This guide only covers whether the old net metering plan transfers. It does not say what the home will pay after sale.