Net metering is the rule that decides what your solar panels' extra power is worth. It can make or break the economics of going solar.
The basic idea
When your panels produce more than you use, the surplus flows to the grid and you earn a credit. When you use more than you produce (like at night), you draw from the grid and spend those credits. You're billed on the net.
Why the terms matter so much
The key question is how much your exported power is worth. Full retail net metering credits exports at the same rate you pay — the most favorable. Some programs credit exports at a lower rate, which weakens solar's payback significantly.
What to check before installing
- Are exports credited at retail or a lower rate?
- Do credits roll over month to month, and what happens to a yearly surplus?
- Are there extra fees for solar customers?
Why it shapes battery decisions
Poor net-metering makes storing your own solar in a battery more attractive than exporting it cheaply. Strong net-metering makes exporting fine. Factor it into whether solar is worth it.
FAQ
What is net metering in simple terms?
A billing rule that credits you for surplus solar power sent to the grid and lets you use those credits when you draw power later. You’re billed on the net difference.
Why does net metering matter for solar?
Because it sets what your exported power is worth. Full-retail credit makes solar pay back faster; lower export rates weaken the economics and favor batteries.