NET METERING BASICS
What is Net metering?
Net metering is a billing arrangement that lets homeowners with solar panels earn credit for the extra electricity their system sends back to the power grid.
Solar panels produce electricity during the day.
Your home uses solar power first.
Any extra electricity flows to the grid.
Your utility gives you a bill credit for that exported energy.
At night or on cloudy days, you use those credits to offset grid electricity.
NET METERING TYPES
Exports are credited at the same rate you pay for electricity.
Most favorable for homeowners.
Becoming less common in some states.
Exports are credited at a lower, fixed rate (often wholesale).
Still reduces bills, but savings are smaller.
Common in newer solar programs.
Credits accumulate during the year.
Utility settles the balance annually (sometimes paying a reduced rate for excess).
NET METERING v. NET BILLING
Credits are measured in kilowatt-hours (kWh).
Some utilities cap:
System size
Total program participation
Policies vary by state and utility.
Net metering applies only when your system produces more than you use at that moment.
Without a battery: excess power goes to the grid β you earn credits.
With a battery: excess power can be stored on-site instead of exported.
Many homeowners use both for maximum savings and backup power.
Plain-Language Summary (Sales-Friendly)
Net metering lets you send unused solar power to the grid and get bill credits you can use later, reducing how much electricity you have to buy from the utility.
UTILITY COMPANY BREAKDOWN
Homeowners receive credits for excess solar energy at or near the full retail rate β usually the most favorable for residential solar.Β
Florida Power & Light (FPL) β Retail net metering present (state policy supports it).
Delmarva Power (DE/MD) β Offers robust net metering with credits.
ComEd (Commonwealth Edison) (Illinois) β Traditional rollover net metering for systems under thresholds (policy evolving).
Duke Energy Indiana β Net metering available (may be optimized for self-consumption).Β
Idaho Power Company β Utility-level net metering policies.Β
Georgia Power β Net metering programs exist (specific terms may vary).Β
Hawaiian Electric Company β Net metering and successor credit systems (Hawaii adjusts).
Excess solar is credited at wholesale/avoided cost or time-varying values rather than full retail, or uses a hybrid model. This tends to reward self-consumption over exports.Β
Pacific Gas & Electric (PG&E) (California) β Net Billing Tariff (NEM 3.0): export credits at avoided cost, time-varying rates.
Arizona Public Service (APS) β Uses a fixed export rate / net billing structure rather than full retail credit.Β
Tucson Electric Power (TEP) (AZ) β Similar export compensation regime.Β
UniSource Energy Services (Arizona) β Uses adjusted export credits.
In some states, thereβs no binding statewide net metering rule, so utilities may offer varied buy-back/credit rates, or net billing only:Β
Alabama Power Company (AL) β No statewide net metering requirement; compensation terms negotiated with the utility; credits may be low monetary buy-backs.
Tennessee Valley Authority (TVA) (serving many local utilities in TN) β No uniform net metering; local distributors may offer buy-backs/net billing.
South Dakota utilities β No statewide mandate, utility-specific programs vary widely.Β
States have different mandates β even within a state that supports net metering, the specific tariff can vary by utility type (investor-owned vs municipal or cooperative).
Many utilities are transitioning from full retail net metering to net billing or successor tariffs to reflect grid costs.
Virtual and community solar billing credits also exist but vary independently of these utility programs.
Because policy changes frequently (especially with net metering reform and export rates evolving), always:
β
Check the utilityβs most recent interconnection tariff document
β
Look up your stateβs net metering rules on DSIRE
β
Confirm current export credit rates with the utility before estimating solar savings