Net metering vs net billing: the rule that decides whether solar pays off
Net metering credits the solar you export at about the retail price. Net billing credits exports at a much lower rate, so using solar yourself matters more.
Most homes make more solar than they use at midday and send the surplus to the grid. What that exported energy is worth is set by your utility and state.
Under classic net metering, exports spin the meter backwards at the full retail rate — the grid acts like a free battery. Under net billing (California since April 2023 and a growing list of states and utilities), exports earn something closer to wholesale value, often 20–40% of retail.
Under net billing, the share of solar you use directly (self-consumption) drives your savings. Batteries, EV charging and running appliances at midday become more valuable; oversizing becomes less valuable.