Net Metering Explained: How Utilities Pay for Your Solar Power
🇩🇪 Diesen Artikel auf Deutsch lesenWith classic net metering, every kWh your panels send to the grid earns a credit at the full retail rate, so exports are as valuable as self-use. Many utilities have moved to net billing, where exports earn a lower credit. Under those rules, using more of your solar power at home — or adding a battery — becomes much more important.
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Solar panels produce the most power around midday, when many homes use little. What happens to that surplus depends on your utility's rules — and that single detail can change your solar payback by several years.
The three common models
| Model | How exports are credited | Effect |
|---|---|---|
| Net metering (1:1) | At the full retail rate; the meter effectively runs backward | Best for solar owners |
| Net billing | At a lower export rate, often based on wholesale or “avoided cost” | Self-use matters much more |
| Buy all / sell all | All production is sold at a fixed rate; all use is bought | Depends entirely on the contract rate |
How credits roll over
Most utilities bill monthly but settle credits once a year in a “true-up.” Surplus credits from sunny months cover cloudy months. At the true-up, leftover credits may be paid out at a low rate or simply expire — so a system sized far beyond your annual use rarely pays off.
Why the rules are changing
As more homes install solar, utilities argue that paying full retail for exports shifts grid costs to customers without solar. Several states have revised their rules. California's net billing tariff, for example, credits exports at rates that vary by hour and are generally far below retail prices.
How to maximize value under net billing
- Run dishwashers, laundry and pool pumps during sunny hours.
- Charge your EV at midday if you work from home.
- Pre-cool your home in the afternoon in summer.
- Consider a battery if evening rates are much higher than export credits.
Use the calculator to see how the share you use yourself changes your payback period:
Solar Panel Payback CalculatorHow many years until solar pays for itself?Try the calculator →Where to find your rules
Search your utility's website for “net metering,” “net billing” or “interconnection.” Your state's public utility commission also publishes the current tariffs, and reputable installers should explain them in every quote.
Frequently asked questions
Do I pay anything if my panels cover all my use?
Usually yes. Most utilities charge a fixed monthly customer charge and sometimes minimum bills or grid fees, even for net-zero homes.
Can I change my solar billing plan later?
Sometimes, but switching can mean losing grandfathered terms. Read the tariff carefully before changing.