Net Metering Explained: Why Solar Export Credits Decide Payback

Full retail credit, net billing, and avoided-cost exports can change the value of every kilowatt-hour your roof sends to the grid.

The single policy that moves payback the most, mapped in plain English for homeowners comparing solar quotes.

Key takeaways

undefined should be judged with conservative payback assumptions, not a single optimistic quote number.

Check the strongest assumption against public sources, current rates, and the homeowner's bill context.

Use the next-step links to compare rankings, rerun the calculator, and verify the methodology before treating the estimate as final.

Net metering explained for solar payback

Net metering is the rule that decides how much credit you receive when your solar panels export unused electricity to the grid.

If exports receive full retail credit, solar savings usually improve. If exports receive a lower avoided-cost or net-billing credit, payback can stretch even in sunny places.

Full retail credit vs net billing

Full retail net metering treats exported power close to the same value as power you buy from the grid. Net billing usually credits exports at a lower rate, so using your own solar power becomes more valuable than sending it out.

Why net metering changes solar ROI

The payback effect is simple: every exported kilowatt-hour is either a high-value bill offset or a lower-value credit. The more a system exports, the more the policy matters.

How to use net metering before getting quotes

Before comparing installers, check whether your state uses retail net metering, net billing, or utility-specific export rates. Then run a calculator scenario with a weaker export-credit factor to see whether the deal still works.