Net metering basics

Separate electricity you use from electricity you export

Solar production and household electricity use do not always happen at the same time. Self-consumption means using solar electricity at home as it is produced. Exported production is electricity sent out to the grid instead of being used in the home at that moment.

That distinction matters when reviewing a solar proposal. A production estimate describes electricity the system may generate. It does not, by itself, establish the value of that electricity on your bill. Ask a proposal to show how it treats electricity used at home and electricity exported.

Net metering and net billing rules decide how exported solar power is credited. Those rules differ by state and utility. Do not assume that an exported unit receives the same treatment as electricity used directly in your home.

Read the export-credit terms

Find the utility’s tariff that would apply to your home with solar. Ask which provisions describe exported electricity, how credits are calculated, and where those credits appear on a bill. Keep the written terms with any proposal you are considering.

Ask what charges an export credit can offset. A statement that solar production matches household usage is not enough to explain the resulting bill. The proposal needs to connect its assumptions to the actual tariff, including the treatment of imports and exports.

If a term is unfamiliar, ask the utility to explain it in plain language. Rates and rules vary by utility and state; check your own bill, your utility’s tariff, and your state utility commission. General descriptions are a starting point for questions, rather than a substitute for your account’s terms.

Check timing and fixed charges

If a tariff uses time-of-use pricing, ask how the timing of electricity use and exports enters the bill calculation. Have the proposal identify the schedule it assumes. Ask whether its production estimate and household usage assumptions support that calculation.

Bills usually combine fixed customer charges, per-kWh energy charges, delivery or distribution charges, taxes, and fees. Ask which items would remain with solar and which could be affected by the applicable credit rules. Do not interpret an export credit as a promise that the entire bill disappears.

Ask about unused credits and account settlement

Ask whether unused credits carry forward, expire, or receive another treatment under the tariff. If the terms mention an annual true-up, ask what that settlement means for your account and how any remaining credit or balance is handled.

Also ask what happens to credits if you move or close the account. Get answers tied to the written tariff so you can distinguish confirmed terms from assumptions in a proposal.

Use the state pages for context and the solar calculator for a simple payback estimate. The site’s calculation ignores export rules, so review how your particular net metering or net billing arrangement would affect your bill separately.