30% Federal Tax Credit Available·Avg Payback: 7.2 Years·50 States + DC Covered·$38,400 Avg 25-Year Savings·Federal ITC Locked Through 2032·Real DSIRE Incentive Data·30% Federal Tax Credit Available·Avg Payback: 7.2 Years·50 States + DC Covered·$38,400 Avg 25-Year Savings·Federal ITC Locked Through 2032·Real DSIRE Incentive Data·30% Federal Tax Credit Available·Avg Payback: 7.2 Years·50 States + DC Covered·$38,400 Avg 25-Year Savings·Federal ITC Locked Through 2032·Real DSIRE Incentive Data·30% Federal Tax Credit Available·Avg Payback: 7.2 Years·50 States + DC Covered·$38,400 Avg 25-Year Savings·Federal ITC Locked Through 2032·Real DSIRE Incentive Data·
::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.
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 Combines With Federal ITC
Net metering credits stack with the federal 30% Investment Tax Credit because they reduce your ongoing bill, not your installed cost. The federal credit is calculated on gross system cost; the net metering credit is a separate utility-bill mechanism.
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.