What Is Net Metering? Net Metering vs Net Billing, Explained With Real Numbers
What is net metering? Learn how utilities credit the solar power you export, how net billing differs, and how much each rule is worth on a typical home.
See what your solar is worth each year under your utility's export rules. Split output into power you use at home and power you send to the grid, value each at the right rate, and compare the result with full retail net metering.
Results update as you type. Without JavaScript you see the worked example below.
A net metering calculator values your solar in two parts: power you use at home saves the retail rate, and power you export earns whatever credit your utility pays. With the defaults, 10,000 kWh of solar with 40% self-use and exports credited at the full 18.2¢ retail rate is worth $1,820 a year, or 18.2¢ per solar kWh.
The results show the yearly value, the value of power used at home, the value of exports, kWh exported, the average value per solar kWh and how much less you get than under full net metering. A stacked bar chart compares your rule with full net metering, split into self-use and exports. The scenario table compares full retail credit, your inputs, and your rule with self-use raised by 35 points, as a battery might do.
Self-used kWh = min(output × self-use %, yearly use)
Exported kWh = output − self-used kWh
Self-use value = self-used kWh × retail rate
Export value = exported kWh × export credit
Yearly value = self-use value + export value
Value per kWh = yearly value ÷ output
Full net metering = min(output, use) × retail + surplus over use × export credit
Gap = full net metering value − yearly value
Assumptions that match the code:
Default inputs: 10,000 kWh output, 10,800 kWh use, 40% self-use, 18.2¢ retail, 18.2¢ export credit.
Second example, Nevada-style reduced credit: 12,000 kWh output and use, 40% self-use, 13.2¢ retail and exports at 75% of retail (9.9¢), similar to NV Energy's current net metering structure.
Third example, California net billing: 9,000 kWh output and use, 40% self-use, 32.5¢ retail, 5¢ average export credit (an assumption; check your utility's table).
| Scenario | Yearly value | Value per solar kWh |
|---|---|---|
| Full retail credit | $2,925 | 32.5¢ |
| Your inputs (40% self-use) | $1,440 | 16¢ |
| Self-use +35 points (battery) | $2,306 | 25.6¢ |
The average value per solar kWh is the key number. Under full net metering it equals your retail rate. Under net billing it falls toward the export credit as you export more, which is why sizing and batteries matter. Use this value in the solar savings calculator by setting the export credit percentage, and read what net metering is for the background.
| State or utility (examples) | Export rule |
|---|---|
| Florida investor-owned utilities | Retail credit, monthly rollover; year-end excess paid at avoided cost |
| Massachusetts investor-owned utilities | Close to full retail for residential systems |
| NV Energy | About 75% of retail, locked 20 years |
| Arizona APS and TEP | Export rate locked 10 years at interconnection |
| California PG&E, SCE, SDG&E | Hourly avoided-cost values, locked 9 years for early enrollees |
| Texas | No statewide rule; retail providers and city utilities set their own |
This is an educational estimate using yearly totals. Real bills net exports by hour, time period or month, may include tiered and time-of-use rates, and apply fixed charges and true-up rules that vary by utility. Confirm your export rate and netting period in your utility's current solar tariff.
Under full net metering, each exported kWh earns a credit equal to the retail rate, so it does not matter when you use your solar. Under net billing, exports earn a lower rate, often based on the utility's avoided cost, while solar you use directly still saves the full retail rate. That makes self-use more valuable.
Because your export credit equals your retail rate. With the defaults, both are 18.2 cents, so every solar kWh is worth the same whether you use it or export it, and all three scenarios show $1,820. Lower the export credit and the self-use share starts to matter.
California's investor-owned utilities pay hourly Avoided Cost Calculator values under the Net Billing Tariff, plus a small locked adder for some customers. Secondary summaries put average export values around 4 cents per kWh in 2025 and 2026, roughly 12 to 20 percent of retail. Check your utility's export rate table for your application year.
Many utilities pay a lower avoided-cost rate for net surplus at the annual true-up. Florida's rule, for example, credits exports at retail month to month and pays any year-end excess at avoided cost. This calculator values every exported kWh at the single export credit you enter, so lower it if you expect a large surplus.
A battery stores midday solar that would earn a low export credit and uses it in the evening, when it offsets retail-price power. The third scenario models this by raising self-use 35 points. For a fuller model with battery losses and cycling, use the NEM 3.0 calculator.
Usually not. Export credits normally offset energy charges, not fixed customer charges or minimum bills. In California, export credits cannot offset the new income-graduated fixed charge, though the ACC Plus adder can.
It depends on the program. California locks export values for nine years for customers who enroll in the first five years of the Net Billing Tariff, Arizona's APS and TEP lock the export rate for 10 years at interconnection, and NV Energy locks its rate for 20 years. Read your interconnection agreement for the terms.
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