Question 1

What is net metering?

Accepted Answer

Net metering is a billing policy that credits solar panel owners for the excess electricity they export back to the grid. When your panels produce more than you use, the surplus goes to the grid and you receive credits on your bill. When you draw from the grid at night or during low-production periods, you use those credits.

Question 2

How do net metering credits work?

Accepted Answer

Credits are typically calculated at the retail electricity rate — the same price you pay for grid power. In some states, however, utilities credit excess export at a lower 'wholesale' or 'avoided cost' rate, which can be 30–60% less than retail. Understanding your state's policy is essential to estimating real savings.

Question 3

Can I be disconnected from the grid with net metering?

Accepted Answer

In most states with net metering, you remain connected to the grid. You draw power when your panels aren't producing and export surplus when they are. Some off-grid solar setups exist, but they require battery storage and are not the standard net metering setup.

Question 4

Which states have the best net metering policies?

Accepted Answer

California, New York, Massachusetts, New Jersey, and Connecticut historically had the strongest net metering policies with retail-rate credits and additional capacity-based bonuses. However, many of these states have revised their policies in recent years — check your current utility's net metering tariff for the most accurate picture.

How Net Metering Works — and Whether It Actually Saves You Money

How Net Metering Works

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