Net Metering
A utility billing arrangement that credits solar owners at or near retail rate for excess power exported to the grid.
Quick answer
Net Metering: A utility billing arrangement that credits solar owners at or near retail rate for excess power exported to the grid. Typical cost: No direct cost — varies by utility tariff and impacts solar payback materially..
Why it matters
Net metering is the single biggest variable in solar payback; rule changes (e.g. California NEM 3.0) can extend payback from 6 to 12+ years.
Typical cost
No direct cost — varies by utility tariff and impacts solar payback materially.
Pros
- • Maximizes savings without batteries
- • Simple monthly bill
Cons
- • Being rolled back in many states
- • Doesn't help during grid outages
Common uses
- • Grid-tied solar in states with retail-rate net metering
Alternatives
Net billingSelf-consumption with batteries
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Frequently asked questions
- Is net metering going away?
- In some states yes — check your utility's current tariff before committing to a system size.
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