Net Metering in 2026: How You Get Paid for the Solar You Don't Use

Net metering is the single biggest factor in whether solar pays off — and almost nobody explains it clearly. Here's how it works in 2026, state by state.

Net metering is the single most important factor in whether solar pays off — and almost nobody explains it clearly. In plain English, it's how your utility credits you for the extra electricity your panels send back to the grid. Get a good net-metering deal and solar is a no-brainer. Get a bad one and the math gets more interesting. Here's how it works in 2026.

The basics

Your panels make the most power midday — usually more than your house is using. That surplus flows back to the grid, and net metering credits you for it. At night you pull power back and spend those credits. True 1-to-1 net metering means every kWh you export is worth exactly one kWh you later import — the best case.

Why 2026 is a patchwork

There's no national rule — every state, and sometimes every utility, sets its own. In 2026 they fall into three buckets:

  • Full retail net metering — 1:1 credit. Still the case in much of Florida and several Northeast states. Solar shines here.
  • Net billing / reduced export rates — you're credited less for exports than you pay for imports. California's NEM 3.0 is the headline example, which is why batteries matter more there.
  • Avoided-cost / wholesale — exports are credited at a low wholesale rate, so the goal shifts to using your own power as it's made.

What it means for your system

Under full net metering, you can bank summer surplus for winter, so sizing to cover 100% of your usage makes sense. Under net billing, self-consumption is king — a battery stores midday surplus for the evening instead of selling it back cheap. That's the real reason a battery does or doesn't pay off (more here: do you need a battery?).

The 2026 watch-out

Net-metering rules change, and utilities lobby to weaken them. The good news: most states grandfather existing solar customers in at the rate that applied when they connected — so locking in sooner can protect a better rate for years.

Want to know exactly which net-metering rules apply to your address and utility? Get a free quote and we'll lay it out in plain numbers.