How net metering credits work on your bill
The short version
When your panels produce more than your home uses, the surplus flows to the grid. Net metering is an arrangement in which your utility counts that exported energy and gives you credit for it. Later, when you draw power from the grid at night or on cloudy days, those credits reduce what you pay.
The details vary a lot between regions and utilities, so the most useful thing you can do is learn which version applies to you.
Three common models
Full net metering
Every kilowatt-hour you export offsets one kilowatt-hour you import, at the same retail price. Your meter effectively runs backwards. This is the most generous model and is becoming less common.
Net billing
Exports are credited at a separate export rate, which is usually lower than the retail price you pay for imports. Credits appear as money on your bill rather than as kilowatt-hours.
Feed-in tariff or export payment
Exports are paid at a fixed or market-linked rate, sometimes as a separate payment rather than a bill credit. Imports are billed normally.
| Model | How exports are valued | What it rewards |
|---|---|---|
| Full net metering | Same as the retail price | Any system size up to your yearly use |
| Net billing | A lower export rate | Using solar energy on site |
| Export payment | A fixed or market rate | Exporting at high-value times |
How the meter counts
A solar home normally has a bidirectional meter. It records two separate totals:
- Import: energy you take from the grid
- Export: energy you send to the grid
Your bill is calculated from both. On a full net metering plan, the utility subtracts export from import over the billing period. On net billing, each total is priced separately, and the export credit is deducted from the import cost.
Your solar inverter app shows total production. The difference between production and export is your self-consumption, which never appears on the bill because it never passed through the meter.
Reading your bill
Look for these lines on a typical solar bill:
- Energy imported: kilowatt-hours bought from the grid
- Energy exported: kilowatt-hours sent to the grid
- Export credit: the value given to your exports
- Credit carried forward: unused credit moved to the next period
- Fixed charges: daily connection or service fees that credits often can’t offset
Fixed charges are a frequent surprise. Even a home that exports more than it imports may still receive a small bill because of them.
When credits expire
Many plans let credits roll over from month to month, which helps because summer surplus can offset winter imports. Some plans reset once a year, and any remaining credit is paid out at a low rate or lost. Check the true-up or settlement date for your plan. If it falls just after summer, you may lose credit you were counting on for winter.
Making the most of your credits
The less generous your export value, the more it pays to use solar energy at home instead of exporting it.
- Run dishwashers, washing machines, and dryers around midday
- Set water heaters or heat pumps to boost while the sun is up
- Charge an electric car during the day when you can
- Consider a battery if export credits are much lower than import prices
Questions to ask your utility
- Which export model applies to new solar connections?
- Are credits valued in kilowatt-hours or in money?
- Do credits roll over, and when is the settlement date?
- Will my current tariff change when I add solar?
- Is there a limit on how much I can export?
Net metering rules change over time, often only for new customers. Get the current terms in writing before you sign an installation contract, and base your savings estimate on those terms rather than on a neighbour’s experience.
