Residential Federal Credit: $0·§25D Ended After Dec 31, 2025·50 States + DC Covered·State Incentives Only·Calculator Uses $0 Federal Credit·Real DSIRE Incentive Data·Commercial §48E: General Info, Not Tax Advice·No Sales Calls · No Email Gates·Residential Federal Credit: $0·§25D Ended After Dec 31, 2025·50 States + DC Covered·State Incentives Only·Calculator Uses $0 Federal Credit·Real DSIRE Incentive Data·Commercial §48E: General Info, Not Tax Advice·No Sales Calls · No Email Gates·Residential Federal Credit: $0·§25D Ended After Dec 31, 2025·50 States + DC Covered·State Incentives Only·Calculator Uses $0 Federal Credit·Real DSIRE Incentive Data·Commercial §48E: General Info, Not Tax Advice·No Sales Calls · No Email Gates·Residential Federal Credit: $0·§25D Ended After Dec 31, 2025·50 States + DC Covered·State Incentives Only·Calculator Uses $0 Federal Credit·Real DSIRE Incentive Data·Commercial §48E: General Info, Not Tax Advice·No Sales Calls · No Email Gates·
::NET_METERING

Net Metering for Solar: How It Works & What You're Owed

Net metering is the policy that lets your utility credit you for electricity your solar panels send back to the grid. In states with retail-rate net metering, every excess kWh is credited at the same price you'd pay to buy that kWh — effectively turning the grid into a no-cost battery.

States With Net Metering

45 states currently offer net metering. Click into any state for the specific terms.

How to Claim Net Metering

When your solar production exceeds your home's instant consumption, the surplus flows backward through the meter and onto the grid. The utility tracks net kWh imported vs. exported across each billing cycle. Most homeowners run a small import bill in winter and a credit balance in summer.

How Net Metering Relates to the Ended Federal Credit

Net metering is a utility-bill credit, separate from any tax credit. The federal residential credit does not apply to a system installed in 2026, so net metering is not stacking on top of it.

Frequently Asked Questions

What is the difference between retail-rate and avoided-cost net metering?
Retail-rate credits your exports at the same price you pay for grid electricity (~$0.14/kWh nationally). Avoided-cost credits at the utility's wholesale generation cost (~$0.04/kWh). The difference can change a system's payback period by years.
Will net metering credits roll over month to month?
In most states, yes. Surplus credits roll forward and offset future bills. A handful of states cash out unused credits annually at avoided-cost rates rather than allowing indefinite carryover.
Can my utility take net metering away?
States set the policy floor; utilities cannot remove net metering unilaterally. However, several states have moved newly installed systems to less generous successor tariffs (e.g. California's NEM 3.0). Existing systems are typically grandfathered for 20 years.