What Is Net Metering?
Under net metering, a utility tracks both the electricity a customer pulls from the grid and the surplus their solar system sends back, then credits the exports against the bill. How generous that credit is depends on the state and utility, from full retail value to a lower fixed or hourly rate.
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Under net metering, a utility tracks both the electricity a customer pulls from the grid and the surplus their solar system sends back, then credits the exports against the bill. How generous that credit is depends on the state and utility, from full retail value to a lower fixed or hourly rate.
Net Metering explained
A net-metered home has a meter that records flow in both directions: it pulls power at night and exports at midday. In the classic arrangement each exported kilowatt-hour offsets one imported at the same price, so the bill reflects net use. Variants include monthly rollover credits, annual settlement, caps on system size or total program capacity, and net billing, where exports earn less than imports cost.
Net metering is the first policy question in most proposals. Setters learn which utility serves the address because the program, not the panels, decides savings. Closers pull the tariff before running production numbers, and they check whether the home sits in a territory that has moved away from full-credit net metering. In those places proposals shift toward self-use and storage, which changes what the appointment is actually about.
Common errors: telling a homeowner the utility will pay for extra power, when most programs only credit the bill; assuming the rules are identical statewide, when cooperatives and municipal utilities often follow their own; and assuming today’s terms last forever. A net-metered customer also still pays fixed charges and may owe a minimum bill, so the bill will not necessarily read zero.
Why it matters when you're buying
Net metering sets the ceiling on a homeowner’s bill savings, so learning the local rule before every appointment prevents both underselling and overselling. VA Horizon books exclusive, double-confirmed appointments inside the utility territory a client sells into, so the tariff to check is known before the visit.
Frequently Asked Questions
How does net metering work with solar panels?
Does net metering mean the utility pays me for extra power?
Is net metering available in every state?
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