Net metering, explained
How your utility credits the solar power you don't use right away — and why it matters for payback.
The basic idea
Solar panels produce most during the middle of the day, often more than your home uses. That extra power flows to the grid. Under net metering, your utility credits you for it, and those credits reduce your bill when you draw power at night.
Full retail vs. reduced credit
With full retail net metering, every exported kWh is worth the same as one you buy. Some states and utilities have moved to "net billing", where exports earn a lower rate. In those places, solar still pays off, but more slowly.
How to check your state
Each state page includes notes on local utilities and net metering. Policies change, so confirm the current rules with your utility before signing a contract.
Tips if credits are low
- Size the system to your actual use instead of oversizing.
- Run dishwashers, laundry or EV charging during sunny hours.
- Consider whether a battery makes sense.
Frequently asked questions
What is net metering?
Net metering credits you for solar electricity you send to the grid, which offsets electricity you use from the grid at other times.
Is net metering available in every state?
No. Policies vary widely by state and utility. Some offer full retail credit, others pay a lower rate for exported power.
What happens if my state pays less for exports?
Your payback gets longer unless you use more of your solar power at home, for example by shifting usage to daytime or adding a battery.
Estimates only. Actual results depend on your home, installer and local rules.