ver thought about what happens to the extra power your solar panels generate, how energy credits work, or why some states are changing their solar rules? You're not the only one. The perks of using solar power are huge, and one of the biggest is net metering. However, it's also a hot topic in the world of energy. Solar users love it, utility companies have different views about it, and there are constantly new policies that can be hard to keep up with.

That's where SunValue steps in. We're clearing up the confusion and answering the 12 most commonly asked questions about solar net metering—in simple, clear language. No unnecessary information or complications. Whether you're an experienced solar user or just contemplating the move to solar power, this guide will provide clear understanding of how net metering works, its impact on your cost savings, and any potential changes to watch out for.

Keen to get clear on net metering once and for all? Let's jump in.

1. What Is Net Metering?

Imagine net metering as your own little energy swap shop. If your solar panels are creating more electricity than your house uses, that surplus energy isn't thrown away—it's sent back to youe utility company. In exchange, your it gives you a credit on your power bill. You can then use these credits when the sun isn't out and you need to take power from the grid, helping to lower your costs.

It's similar to unused mobile data roll-over—what you don't use now is saved for later use. Net metering makes solar power even more of a money saver by making sure you get the most out of every watt your solar panels produce. Without net metering, any surplus power your panels created would just be given to the grid for nothing—and nobody likes giving savings away for free.

The best bit? With net metering, your power bill can be greatly reduced, and sometimes, you might not even have to pay anything for electricity.

2. How Does Net Metering Work?

On sunny days, your panels might produce more power than you consume. This leftover electricity is sent back into the grid and your energy provider rewards you with credits, kind of like solar currency to offset your future bills.

On the flip side, during the night or on less sunny days, your panels might not generate as much power. No worries though, you simply draw the needed electricity from the grid, using your previously earned solar credits instead of paying the full price. This way, you make the most out of your solar investment without the need for pricey battery storage.

Your utility meter actually spins in reverse when you feed energy back into the grid, subtracting from your overall energy usage. When summed up over a month, you only pay for your 'net' energy use, which is why it's called net metering.

3. Do All States Offer Net Metering?

Short answer? No—but most do! Net metering policies vary by state, and some places are more solar-friendly than others.

As of now, over 35 states have mandatory net metering programs, meaning utilities must offer it to solar homeowners. But even in states without official net metering, some utilities voluntarily provide similar programs. The tricky part? The rules aren’t the same everywhere. Some states offer full one-to-one crediting, while others reduce the value of excess solar power over time.

A few states, like California and Florida, have recently changed their policies, making net metering less lucrative for new solar customers. Others, like Arizona, have replaced it with a different system called buyback rates. Meanwhile, solar-friendly states like New York and Massachusetts still offer strong NEM incentives.

So, before you go solar, it’s worth checking your state’s latest policies. A little research now could save you big bucks in the long run!

4. How Are Net Metering Credits Calculated?

The amount of credits you receive is based on how much excess power your solar panels produce and the rules of your electric company's net metering system. In the majority of places, you receive a credit that matches the energy you add to the grid. So, for every unit of energy (kilowatt-hour or kWh) you give away, you get the same amount removed from your electric bill. However, some electric companies give you less than the actual value for each unit of energy.

Bottom line? The more surplus energy you send to the grid, the more credits you rack up—helping you shrink (or even eliminate) your monthly electric bill.

5. What Happens to Unused Net Metering Credits?

In most cases, your extra credits roll over from month to month, covering your future electricity needs. This is great for seasonal solar production—in sunny summer months, you might generate way more energy than you use, and those surplus credits can help offset your bills in the winter.

But there’s a twist: Some utilities reset your credits to zero at the end of the year (usually in spring). If that’s the case, any unused credits go poof—so it’s smart to size your solar system carefully to maximize savings without overproducing.

The good news? Some states offer annual payouts for excess credits, so instead of losing them, you might get a check.

6. How Much Money Can I Save with Net Metering?

The savings on your electricity bill depend mainly on three things: how much you pay for electricity now, the amount of solar power your system can make, and your local net metering rules.

In many situations, people who use solar energy can save between 50% to 90% on their electricity bills. Some even end up not having to pay anything at all! Let's make it clearer with an example. Assume your monthly electric bill is $150. If your solar panels can make more than enough power to cover 80% of what you need, you'll save $120 per month. This means a saving of $1,440 in a year. If you calculate for 20 years, you'll save around $30,000!

Even better? Some homeowners actually build up enough credits to pay nothing for electricity most of the year. So while net metering might not make you rich overnight, it sure makes those energy bills shrink fast.

7. Do I Need a Special Meter for Net Metering?

Yes. To make the most of net metering, your electricity provider will fit a bi-directional meter (also known as a net meter) at your property. This is not your typical electric meter that only records the power that enters your home. A net meter records both the energy you consume from the power grid and the surplus solar energy you feed back into it. Consider it as a two-way toll booth for your power—one path records what you consume, while the other records what you contribute.

In the majority of instances, your utility supplier provides and installs it either for free or at a very low price. If you're making the transition to solar energy, they'll probably exchange your current meter automatically. However, ensure to confirm with your utility provider about any necessary documentation or approvals that must be in place before the installation.

So, even though you require a specialised meter, it's one less thing on your worry list—your utility company has it under control!

8. Can I Still Benefit From Net Metering if I Have a Solar Battery?

Absolutely! Having a solar battery doesn't mean you stop using net metering. Instead, it helps you have more power over your energy consumption.

The process is pretty simple: without a battery, the surplus solar energy you create during the day that you don't use gets sent back to the grid. In return, you get net metering credits. But if you have a battery, that extra energy doesn't have to go back to the grid immediately. Instead, it gets stored in your battery for you to use later, like when the sun's not up.

Now, you might wonder if you still get the benefit of net metering? Indeed, you do, but in a bit different manner. Suppose, your battery is entirely charged and you're still producing more energy than you require, this surplus energy will yet return to the grid, making you earn credits. But, since now you're using more of your own preserved energy, your dependence on net metering credits to reduce your bill will be lessened.

9. What’s the Difference Between Net Metering and Net Billing?

Both net metering and net billing are ways you can earn credits for the extra solar power you generate. But what's the difference? Well, it's all about the value of those credits.

Net metering basically means that any extra electricity you make is worth the same amount as what you'd pay for it. So, say you produce a kilowatt-hour (kWh) of solar energy and you give that back to the grid, you get exactly the same amount off your bill.

Net billing works differently. Any extra energy you make is credited at a lower rate, usually the wholesale price. This is what utility companies pay for electricity, which is quite a bit less than what you'd purchase it for. So here, you're not swapping equal value—you're essentially selling low and buying high.

If where you live still offers net metering in full, go for it! But if not, you can still save money with net billing. You'll just need to be smart about when you use your solar power to get the most out of it.

10. What If My Utility Company Ends Net Metering?

What if your power company decides to change things and stop net metering? Don't worry! Even though it may not be the best news, it doesn't mean your solar panels are suddenly worthless. They're still going to produce free, green energy for your house, lessening your dependency on the power grid. But rather than getting full credits for the excess power you produce, you might get a lower price or be encouraged to join different programs like time-of-use fees or incentives for battery storage.

Here, a solar battery can make a real difference. Instead of giving back any extra energy to the grid for a smaller reward, you can keep it and use it when it's most necessary, like during the times when electricity is more expensive. Some states are also setting up "feed-in tariffs" or "solar buyback programs" that continue to let you sell your spare energy, just at a different price.

11. Is Net Metering Still Worth It?

Short answer? Yes! Even with changing policies, net metering is still one of the best ways to maximize your solar savings. Think of it like having an unlimited roll-over data plan for your electricity. Instead of wasting the extra power your panels generate during the day, you “bank” it as credits and use them to slash your electricity bill later.

Even if your utility company tweaks the rules, solar owners still benefit from significantly lower electricity costs. Plus, many states have net metering alternatives—like solar buyback programs or performance-based incentives—that keep the savings rolling in. And let’s not forget: going solar locks in predictable energy costs while grid electricity rates continue to climb.

12. How Can I Get Started With Net Metering?

Getting started with net metering is easier than setting up your favorite streaming service (and way more rewarding in the long run). Here’s the game plan:

1. Check Your State’s Net Metering Policy – Rules vary by location, so find out what’s available where you live. Many states still offer full retail-rate net metering, while others may have different credit structures.
2. Pick a Reputable Solar Installer – A good installer will handle the legwork, from permits to paperwork, and make sure your system meets utility requirements. Bonus points if they help you explore battery storage options for added energy independence!
3. Connect with Your Utility Company – Once your system is installed, you’ll apply for net metering with your utility provider. They’ll inspect your setup and, once approved, you’ll be ready to start earning credits.
4. Monitor Your Savings – Keep an eye on your energy production and bill credits. Many utilities offer online dashboards so you can track how much you’re saving in real time.

That’s it! Before you know it, you’ll be banking solar credits like a pro and watching your electricity bill shrink.

Final Thoughts: The Power of Net Metering

So you've got the gist of how net metering works? Great! It's a big part of why going solar is a good idea. It means you can make the most of all that sunshine your solar panels are collecting, and it can help you save a heap on energy costs. Not to mention, it's a step towards energy independence and a greener home.

Net metering policies may change, but solar power is still a smart bet. Even if your power company changes the way they do things, you've got options like battery storage and buyback programs that can help you continue to get a lot from your solar power system. Plus, with electricity prices going up, getting into solar now can lock in some serious savings.

Ready to take charge of your energy needs? Now's a great time to go solar. Why let all that sun energy go to waste when it could be working for you?