Which states have the best net metering?

States with full retail net metering (best for solar owners): California (NEM 3.0 has modified this), New York, New Jersey, Massachusetts, Maryland, Nevada, Colorado, and most New England states. States with limited or no net metering: South Carolina, Alabama, Tennessee, Idaho (some utilities). Always check with your specific utility — rules vary even within states.

Is net metering going away?

Some states are modifying net metering programs. California moved from NEM 2.0 to NEM 3.0, significantly reducing export credits for new customers. Other states like Arizona and Nevada have reduced rates in recent years. However, most states still offer some form of net metering. Existing solar customers are often grandfathered into older, more favorable rates.

What is the difference between net metering and net billing?

Net metering credits excess solar at the full retail rate. Net billing (or net energy metering 3.0 in California) credits excess solar at a lower avoided-cost rate — typically 2–5 cents/kWh versus the 10–30 cents you pay for grid electricity. Under net billing, maximizing self-consumption with batteries becomes much more important.

Net Metering by State

What does your state pay for excess solar? Select your state — see the net metering policy, export rate, and your estimated annual bill savings.

Your location and system

Your state?

Monthly solar production?

kWh/mo

Monthly consumption?

kWh/mo

California Net Metering Policy

Avoided cost credit

NEM 3.0 since April 2023. Export rate ~5¢/kWh (much lower than NEM 2.0). Self-consumption is critical.

Export rate: $0.050/kWhRetail rate: $0.33/kWhCredit carryover: Yes (monthly)

Estimated monthly savings in California

$297.00/month — $3,564/year

Self-consumed900 kWh

Exported100 kWh

Export credit$5.00

Still from grid0 kWh

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How to Use This Calculator

Select your state

Net metering policy varies dramatically by state — and even by utility within a state. This calculator uses the statewide policy for the major investor-owned utility in each state. Select your state to see the policy type, export rate, and typical retail rate. Then enter your estimated monthly solar production and monthly electricity consumption.

Understand the policy types

Full retail net metering (green) is the best outcome for solar owners — excess solar is credited at the full retail rate, so you effectively "bank" electricity on the grid. Avoided cost credit (yellow) pays you only the utility's cost to generate power (3-8¢/kWh), much less than the retail rate you pay. No net metering (red) means excess solar has little or no monetary value — self-consumption and battery storage become critical.

Compare self-consumption vs export

The results show how much solar you self-consume (highly valuable at retail rate) vs how much you export (valued at the state export rate). In states with low export rates like California (NEM 3.0 at ~5¢) vs retail at 33¢, exporting 1 kWh is only worth 15% as much as using it yourself. In these states, battery storage makes economic sense to avoid exporting during the day and draw from batteries in the evening.

Net Metering Policies at a Glance

Here are the key states grouped by policy strength:

Full retail net metering (best for solar ROI)

Connecticut, Massachusetts, Rhode Island, Vermont, Maine, New Hampshire — New England states with full retail + high rates ($0.22-0.35/kWh) = excellent solar economics
New York, New Jersey, Maryland, Virginia, Pennsylvania — Mid-Atlantic full retail with moderate-to-good rates
Florida, Colorado, Minnesota, Oregon, Washington — Full retail with good incentives

Avoided cost / reduced credit (solar still viable)

California — NEM 3.0 dropped export to ~5¢ but self-consumption at 33¢ still makes solar worthwhile; battery storage significantly improves ROI
Arizona — Avoided cost but reasonable rates and excellent sun hours
Nevada — Grandfathered full retail for pre-2016; new installations get avoided cost

Limited programs (solar value mainly from self-consumption)

Texas — Deregulated; export value varies by retail provider, typically low
Tennessee — TVA Green Power Switch, very low export rate
Alabama, Mississippi — No statewide mandate; limited utility programs

FAQ

What is net metering and how does it work? ▼

Net metering allows solar owners to send excess electricity to the grid and receive a credit on their bill. Under full retail net metering, each kWh you export earns a credit equal to what you'd pay to import that kWh later. Your meter runs forward when you import and backward (or tracks separately) when you export. At the end of the billing period, you only pay the "net" difference. Under avoided cost programs, you export at wholesale prices (3-8¢) and pay retail prices (12-35¢) — a significant asymmetry that reduces solar ROI.

What happened to California's net metering? ▼

California's CPUC adopted NEM 3.0 in December 2022, effective April 2023 for new solar customers. NEM 3.0 dramatically reduced export rates to roughly 5¢/kWh (called "Avoided Cost Calculator" rates), down from near-retail rates under NEM 2.0. The intent is to incentivize self-consumption and battery storage rather than grid export. NEM 2.0 customers are grandfathered for 20 years from their activation date. For new NEM 3.0 customers, the solar payback period lengthened significantly — battery storage is now nearly essential to achieve good ROI.

Does my net metering credit carry over month to month? ▼

In most states with full retail net metering, credits carry over month to month — you bank summer surplus to offset winter consumption. In most avoided cost states, credits do not carry over; unused credits expire at month-end or at an annual true-up. Annual true-up is common in California (PG&E, SCE, SDG&E) where unused NEM credits are settled at the end of the program year, typically at a low "export rate" that's below even the avoided cost. This makes annual production planning important in California.

Should I size my solar system to 100% offset or less in a low net metering state? ▼

In states with low export rates (California NEM 3.0, Texas, Nevada new), oversizing your solar system beyond your consumption creates excess export that returns little value. In these states, the optimal strategy is to size for roughly 80-90% of annual consumption (to keep some self-consumption) and add a battery to capture midday surplus for evening use. In full-retail net metering states, sizing to 100% or even 110% makes sense since each exported kWh earns full retail credit.