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  1. Home
  2. Glossary
  3. Net Metering
Solar glossary

Net Metering

Net metering lets eligible solar customers receive bill credits for extra electricity exported to the grid.

What net metering means

Net metering is a billing arrangement where extra solar electricity sent to the grid can offset electricity pulled from the grid later. The exact credit value depends on local utility rules and state policy.

For homeowners, the important question is not only whether credits exist, but how much each exported kWh is worth. Compare the details in the Net Metering Guide and the Net Metering vs Net Billing comparison.

What to check on your bill

  • Whether exported solar is credited at retail rate, avoided-cost rate, or another tariff.
  • Whether credits roll over monthly, expire, or reset annually.
  • Whether fixed charges, minimum bills, or time-of-use rates reduce the value of exports.

Why it matters

The value of exported solar can change payback, battery economics, and how much solar a homeowner should install.

Example

A home may export extra solar at midday and use grid electricity in the evening. Under strong net metering rules, exported credits can reduce the evening bill more than under lower-value export credits.

Topic

Incentives

Related resources

  • Solar ROI Calculator
  • Net Metering Guide: Solar Credits, Net Billing, and Savings
  • Net Metering vs Net Billing: What's the Difference for Solar Homeowners?
  • Solar Payback Guide: Calculate Your Payback Period
  • Net Billing

Sources

  • Energy Saver: Grid-connected renewable energy systemsenergy.gov