Net Metering Calculator 2026

Estimate how much you can save by selling excess solar electricity back to the grid. Net metering is one of the most important financial factors for solar in 2026, especially now that the federal tax credit is no longer available.

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Estimate Your Net Metering Savings

Enter your system details and net metering policy to estimate your annual energy credits and savings.

National avg: ~1,400. Southwest: 1,600-1,900. Northeast: 1,100-1,300.

Avg US home: ~10,800 kWh/yr. Check your utility bill.

Only for reduced net billing. Typically $0.03-0.10/kWh.

% of solar production used directly. Typical: 30-50% without battery.

How Net Metering Works

Net metering is a billing mechanism that allows solar homeowners to get credit for excess electricity they send to the utility grid. Here is the basic flow:

Solar Panels
→
Your Home
↔
Utility Grid

Excess solar production flows to the grid and earns you credits. At night or on cloudy days, you draw power back.

During peak sunlight hours, your solar panels typically produce more electricity than your home uses. Under net metering, this excess flows to the grid and your meter records a credit. In the evening, when your panels are not producing, you draw electricity from the grid and your credits offset the cost. At the end of each billing period, you pay only for your net consumption.

With the federal solar tax credit now expired, net metering is arguably the single most important policy for determining whether solar makes financial sense in your location. A strong net metering policy can reduce your electricity bill by 80-100%, making the investment worthwhile even without any tax credits.

Net Metering vs. Net Billing: What You Need to Know

Full Retail Net Metering (Best for Solar Owners)

Under traditional net metering, every kWh you export to the grid earns a credit equal to the full retail rate you pay for electricity. If you pay $0.16/kWh, each exported kWh is worth $0.16. This is the most favorable policy for solar owners and is still available in many states.

Reduced Rate Net Billing

Some states have moved to net billing programs where exported solar is credited at a lower rate than retail. This is typically the "avoided cost" or wholesale rate, which might be $0.03-0.10/kWh. California's NEM 3.0 is the most notable example, where export credits dropped roughly 75% compared to the previous NEM 2.0 rates.

No Net Metering

A few states or utility territories have no net metering at all. In these cases, you only save money on the electricity you consume directly from your panels. Any excess production is either lost or compensated at minimal rates. Battery storage becomes essential in these areas.

Why this matters more than ever: Without the federal tax credit to reduce your upfront cost, the ongoing value of net metering credits is now a bigger factor in your total solar return. A state with full retail net metering can make solar a great investment even with no state tax credit.

Net Metering Policies by State (2026)

State Net Metering Type Export Credit Rate System Size Cap Notes
ArizonaReduced~$0.03-0.05/kWhVaries by utilityExport rates set by utility; much lower than retail
CaliforniaNet Billing (NEM 3.0)~$0.04-0.08/kWhNo capTOU rates; exports worth far less than retail. Battery strongly recommended.
ColoradoFull RetailFull retail rate120% of usageStrong net metering; Xcel Energy territory
ConnecticutFull RetailFull retail rate25 kW residentialCredits carry forward annually
FloridaFull RetailFull retail rate2 MWStrong policy, but reform efforts ongoing
HawaiiReduced (CGS+)~$0.10-0.15/kWhVariesMultiple tariff options; self-supply encouraged
IllinoisFull RetailFull retail rate25 kWStrong net metering with monthly rollover
MarylandFull RetailFull retail rate25 kWCredits roll over at full value
MassachusettsFull RetailFull retail rate25 kWExcess credits may be valued differently in some utilities
New JerseyFull RetailFull retail rate25 kWAnnual reconciliation; excess paid at wholesale
New YorkFull Retail / VDERVaries25 kWResidential mostly full retail; commercial uses VDER
North CarolinaFull RetailFull retail rate25 kWDuke Energy territories
TexasVariesVaries by REPNo capDeregulated market; shop for best export rates
VirginiaFull RetailFull retail rate25 kWDominion Energy territory

This is a simplified overview. Net metering rules can vary by utility within a state, and policies are subject to change. Always verify with your specific utility.

How to Maximize Your Net Metering Value

1. Right-Size Your System

Most utilities cap net metering at 100-120% of your annual consumption. Going larger wastes money because excess credits are typically paid out at wholesale rates at year-end reconciliation. Use your past 12 months of electricity bills to determine the right system size.

2. Consider Battery Storage

If your state uses reduced net billing (like California NEM 3.0), battery storage lets you store midday solar production and use it during expensive evening hours instead of exporting at low rates. This can add $500-1,500+ per year in value compared to exporting.

3. Shift Consumption to Solar Hours

Run heavy loads (dishwasher, laundry, EV charging) during peak solar hours to maximize self-consumption. Every kWh you use directly from your panels avoids both the retail rate and any net metering losses.

4. Monitor and Optimize

Most modern solar inverters come with monitoring apps that show real-time production and consumption. Use this data to shift usage patterns and maximize the value of your solar production.

5. Understand Your Utility's True-Up

Most net metering programs do an annual "true-up" where they reconcile your credits. Excess credits beyond your annual usage may be paid out at wholesale rates (often $0.02-0.04/kWh) or forfeited entirely. Understand your utility's policy to avoid giving away free electricity.

Frequently Asked Questions

What is net metering and how does it work?
Net metering is a billing arrangement where your utility credits you for excess solar electricity you send to the grid. When your panels produce more than you use (typically midday), the excess flows to the grid and your meter records a credit. In the evening, you draw that credit back. At the end of the billing period, you pay only for your net consumption.
Is net metering still available in 2026?
Net metering availability varies by state. Most states still offer some form of net metering or net billing, but the terms have changed in several states. California moved to NEM 3.0 (lower export rates), and other states have introduced reduced-value programs. Check with your specific utility for current terms.
What is the difference between net metering and net billing?
Traditional net metering credits you at the full retail rate for every kWh you export. Net billing (or reduced-rate net metering) credits you at a lower rate -- often the wholesale or avoided cost rate, which can be 25-75% less than retail. Net billing programs are becoming more common as states update their solar policies.
How much is a net metering credit worth?
Under full retail net metering, each exported kWh is worth your full retail electricity rate (typically $0.12-0.35/kWh depending on your state). Under reduced net billing programs, credits may only be worth $0.03-0.10/kWh. The value depends on your state policy and utility.
Does net metering replace the federal solar tax credit?
No. Net metering and tax credits are completely separate incentives. Net metering is an ongoing billing arrangement that credits you for solar electricity exported to the grid. The federal tax credit was a one-time income tax reduction based on your system cost. With the federal ITC expired in 2026, net metering becomes an even more important part of the financial case for solar, as it provides ongoing savings year after year.
Should I add battery storage to maximize net metering savings?
It depends on your net metering policy. Under full retail net metering, batteries provide less financial benefit because you are already credited at full value for exports. Under reduced net billing (like California NEM 3.0), batteries are very valuable because you can store midday production and use it during expensive evening hours instead of exporting at low rates.

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