Net Metering Policy
The regulatory framework governing how solar customers are credited for electricity they export to the grid. Policies vary dramatically by state, ranging from full retail credit to avoided cost only.
Why It Matters
Net metering policy is the single biggest factor in residential solar economics after the federal tax credit. A state with strong net metering can double solar ROI.
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.
Net Billing
An export compensation mechanism where excess solar electricity sent to the grid is credited at a rate lower than the retail rate — typically wholesale, avoided cost, or a set export rate.
Export Rate
The per-kWh credit received for electricity exported from a home solar system to the grid. May equal retail rate (net metering), avoided cost (net billing), or a time-varying amount.
Net Metering Successor Tariff
Rate structures that replace traditional 1:1 net metering, typically crediting solar exports at a lower rate based on time-of-day, grid value, or avoided cost. Examples include California NEM 3.0.