Net Metering
Net Metering
Net MeteringNet metering is a billing arrangement that allows solar homeowners to send excess electricity to the grid in exchange for credits on their utility bill. When your solar panels produce more electricity than you use, the surplus goes to the grid, and when you need more than you produce, you draw from the grid.
Rate / Amount
Credits at retail electricity rate (varies: $0.08–$0.35/kWh)
Valid Through
Policy varies by state
Example
A homeowner exporting 200 kWh/month at $0.15/kWh earns $30/month in credits — $360/year.
How It Works
Your utility meter tracks electricity flowing both ways. Surplus solar energy exported to the grid earns credits at the retail electricity rate (in most states). These credits offset future electricity bills. At year-end, some utilities compensate you for remaining credits at the wholesale rate.
Eligibility
Available in most US states for systems up to a specified capacity limit (typically 10–25 kW for residential). Policies vary significantly by state and utility.
Real-World Example
A homeowner exporting 200 kWh/month at $0.15/kWh earns $30/month in credits — $360/year.