Net metering is the policy that decides what happens when your solar panels produce more electricity than your home is using. Under traditional net metering, that excess flows to the grid and your utility credits you for it — often at or near the retail rate — which can significantly improve solar economics. The catch: the rules vary by state and utility, and they change.
How net metering works
On a sunny afternoon your system may produce more than you're consuming; the surplus exports to the grid and your meter effectively runs backward, banking credits. At night you draw from the grid and spend those credits. Your bill reflects the net of what you used minus what you produced.
Why the details matter
- Credit rate: full retail-rate credit is the most favorable; some states/utilities credit exports at a lower "avoided-cost" rate, which changes the math.
- Rollover rules: do unused credits carry month to month? Do they expire annually?
- Policy changes: several states have revised net-metering programs in recent years. Existing customers are often grandfathered, which is one reason homeowners act before rules change.
- Batteries: where export credit is weak, storing surplus in a battery for evening use can beat exporting it. When batteries are worth it →
Net metering in the states we serve
Policies differ meaningfully across Pennsylvania, Ohio, Michigan, Maine, Rhode Island, New Mexico, Georgia, Illinois, and Massachusetts — and within states by utility. Your installer should model your specific utility's current rules, not a generic assumption. Check your state page for local context: see all state guides →
What this means for your decision
Strong net metering makes exported power valuable; weak net metering shifts the strategy toward right-sizing the system and possibly adding storage. Either way, the savings estimate in any quote should state which net-metering assumption it uses — make them show you.