Buyback Rate
The rate at which a utility purchases excess solar electricity from a customer. May equal the retail rate (full net metering) or a lower wholesale/avoided cost rate.
Why It Matters
The buyback rate directly determines how much value you get from excess solar production. Higher rates improve payback; lower rates push toward batteries and self-consumption.
Real-World Example
Related Tools
Related Terms
Net Metering
A billing mechanism that credits solar energy system owners for the electricity they add to the grid. The excess power generated during the day offsets power consumed at night.
Avoided Cost
The cost a utility would have incurred to generate or purchase electricity that was instead provided by a distributed resource like rooftop solar.
Feed-in Tariff
A policy mechanism that guarantees a fixed payment rate for renewable energy fed into the grid, typically for a set period.