Net metering is one of the biggest reasons solar saves money: it lets you send your extra electricity to the grid and get credited for it. Here is how it works and why it matters for your savings.
How Net Metering Works
When your panels produce more electricity than your home is using (for example, midday), the surplus flows back to the grid. Your utility credits you for that power. Later, when you use more than you produce (at night), you draw from the grid and those credits offset the cost. In effect, the grid acts like a giant battery for your extra solar.
Why It Matters for Savings
Net metering means you get value for every kilowatt-hour your system produces, not just what you use in the moment. This is a major part of why solar pays off, and why your payback period is as short as it is.
Net Metering Is Changing in Some States
The rules vary by state and are evolving. Some states still offer full retail-rate net metering; others (like California under NEM 3.0) credit exports at a lower rate, which makes pairing solar with a home battery more valuable. Always check your state’s current policy.
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FAQ
Do I get a check for my extra solar?
Usually you get bill credits rather than cash. The credits offset the electricity you draw when your panels are not producing.
Is net metering going away?
Not entirely, but it is changing in some states toward lower export credits, which makes batteries more attractive. Check your state’s rules.
Related
General 2026 guidance. Net-metering rules vary by state and change over time.