Net Metering Explained

Net metering lets you sell excess solar electricity back to the grid and get credited for it. It's one of the biggest factors in your solar ROI.

How It Works

During the day, your panels often produce more electricity than you use. Without net metering, that excess is wasted. With net metering:

1. Your excess electricity flows to the grid
2. Your meter runs "backwards" (or you get a credit)
3. At night or on cloudy days, you draw from the grid
4. At the end of the billing period, you pay only the net difference

If you produced 500 kWh and consumed 400 kWh, you only pay for 0 kWh and carry a 100 kWh credit forward.

Net Metering vs. Feed-in Tariffs

These are two different compensation models:

Net metering — your exported kWh offsets your imported kWh 1:1. Simple and favorable for homeowners.

Feed-in tariff — you get paid a fixed rate (often lower than retail price) for each kWh you export. Common in countries phasing out net metering.

Net Metering Around the World

Net metering policies vary by country and change frequently:

• United States — Available in most states, though some are shifting to net billing with reduced export rates. Policies vary significantly by state.
• Germany — Uses feed-in tariffs rather than true net metering. Exported electricity is compensated at a fixed rate.
• Australia — Feed-in tariffs vary by state, typically AUD 0.05–0.12/kWh for exports. Self-consumption is more valuable than exporting.
• United Kingdom — Smart Export Guarantee (SEG) requires suppliers to pay for exported electricity at negotiated rates.
• Spain — Net metering with monthly settlement for residential systems. Surplus credits can offset future bills.
• India — Net metering available for rooftop solar in most states, though policies differ by state electricity board.

Maximizing Net Metering Benefits

Shift consumption to daytime — run washing machines, dishwashers, and EV charging during peak solar hours to use your own power directly.

Size your system carefully — a system that matches your annual consumption maximizes net metering value. Oversizing means exporting more than you import, and credits may expire.

Monitor your production — most inverters include monitoring apps that show when you're producing vs. consuming.

Check how net metering affects your savings with our solar calculator.