Claire WhitakerBy Claire Whitaker

Updated November 2026

Net metering vs time of use is the choice many solar homeowners face once their panels are installed or planned. Net metering credits your utility bill for the electricity you send back to the grid, usually at a one-to-one ratio. Time-of-use billing charges and credits power based on when it flows, so the same kilowatt-hour can be worth much more at 6 p.m. than at noon. This guide shows you how to compare the two so you can see which one fits your home.

Understand How Each Billing Method Works

Under traditional net metering, your meter spins forward when you draw power and backward when your panels export extra power. At the end of the billing period, the utility nets those two numbers. If you exported more than you used, the surplus often rolls over as a credit. Many programs apply a flat rate, so timing matters less.

Time-of-use (TOU) billing splits the day into periods, typically peak, off-peak and sometimes shoulder hours. Electricity costs more during peak hours, often late afternoon and evening, and less overnight. Your exports and imports are valued at the rate in effect when they happen. For a solar home, this can be a double-edged sword, because midday production usually falls in the cheapest window.

Compare Your Solar Production Against Your Usage Pattern

Start by pulling 12 months of utility data. Look at your monthly kilowatt-hours, and if your utility offers interval data, check what you use by hour. Then compare that with the production estimate from your installer or a solar calculator.

  1. Identify your utility’s net metering rules, including any export limits and rollover terms.
  2. Find the TOU rate schedule, including exact peak and off-peak hours and each rate.
  3. Estimate how many kWh you will export at midday and how many you will import in the evening.
  4. Calculate the net effect of each plan using those numbers, not averages.

Run the Numbers With a Simple Comparison

The table below shows how the two methods typically treat the same solar home. Your utility’s exact terms will decide the outcome.

Factor Net Metering Time of Use
How exports are valued Often a flat or one-to-one credit Valued at the rate in effect when exported
Effect of midday solar Credits are equal to daytime use Midday exports may earn less than evening imports cost
Best fit for Homes with variable use and steady production Homes that shift use to off-peak hours or add batteries
Main risk Policy changes to credit rates Evening bills rise if you run heavy loads at peak times

Owners often report that TOU plans reward them only after they shift laundry, dishwashing and EV charging into cheaper hours. If your usage stays the same all day, a flat net metering credit can be easier to predict. For a deeper look at how peak hours affect the decision, see Net Metering Peak Hours vs Time-of-Use Billing (2026): Which Should You Choose?

Choose the Plan That Fits Your Home

Choose net metering if your exports are steady, your evening use is modest, or you want a simpler bill. Choose time of use if you can move flexible loads to off-peak hours, or if you plan to add a battery to store midday power for the evening. Many utilities also let you switch plans, so check whether your rate change is permanent before you commit. For a related comparison in another state, Solar Net Metering vs Battery: Which Should You Choose? covers how storage changes the math.

Common Mistakes

  • Comparing the headline rate without checking the peak window length.
  • Ignoring the monthly fixed charges that apply under both plans.
  • Assuming midday solar always earns the peak rate.
  • Forgetting that rate schedules and net metering rules change over time.
  • Skipping a review after you change appliances or add an EV.

FAQ

Is net metering better than time of use for solar?

Neither is better in every case. Net metering suits steady, predictable homes, while time of use can pay off for households that shift their use to cheaper hours.

Can I switch from net metering to time of use?

Many utilities allow a switch, but some restrict how often you can change plans. Contact your utility to confirm the rules and any waiting period.

Does a battery change the decision?

Yes. A battery can store midday solar and discharge during peak hours, which often makes time of use more attractive. Have a licensed installer model the savings before you buy.

Conclusion

Net metering vs time of use comes down to when your home uses power and when your panels produce it. Pull your interval data, run the numbers against your utility’s actual rate schedule, and compare the two plans side by side. If the math is close or your system is large, a licensed solar installer or utility rep can help you confirm the best choice.

Ready to choose one?

Claire Whitaker

About Claire Whitaker

Claire Whitaker is part of our editorial team and reviews and edits our home solar guides, checking product details against manufacturer specifications and owner feedback.