By Ethan BrooksUpdated November 2026
Net and gross metering solar billing set up two very different ways of getting paid for the power your panels send back to the grid. Net metering nets your exports against what you pull from the grid each billing period, so your bill reflects only the difference. Gross metering pays for every kilowatt-hour you export and bills you separately for everything you import. For most homeowners with a grid-tied system and steady daytime production, net metering is the stronger choice. Gross metering can make sense for owners who consume almost all their solar power on site and want a clearer split between exports and imports.
| Criteria | Net Metering | Gross Metering |
|---|---|---|
| How exports are credited | Exports offset imports in the same billing period | Every exported kWh is metered and paid separately |
| Bill structure | One net balance, often with a fixed connection charge | Separate import and export line items |
| Excess credits | Often roll forward to the next month | Paid out per kWh, so there is no carryover to manage |
| Typical fit | Homes that use solar power at all hours and export at midday | Homes with a large export share and a utility that pays for exports |
| Metering equipment | Usually a single bidirectional meter | Often two meters or a meter that records both directions separately |
How Each Option Calculates Your Credit
Under net metering, the meter spins backward when you export and forward when you import. At the end of the billing cycle, the utility subtracts exports from imports. If you exported 600 kWh in a month and imported 450 kWh, you carry a 150 kWh credit forward. Winner for most homes: net metering, because the math is simple and the credit is applied to the power you actually use.
Gross metering keeps the two flows apart. Your exports are recorded and paid at the utility’s export rate, and your imports are billed at the retail rate. Nothing offsets anything else on the bill. Winner for large exporters: gross metering, because each exported kilowatt-hour earns its own payment without being used up against your usage.
Which Pays More for Exported Power?
Net metering usually values exports at the full retail rate, since each exported kWh cancels one you would otherwise buy. Gross metering often pays a lower export rate, sometimes a wholesale-type figure, which can reduce the value of surplus power. Owners often report that the difference is most noticeable in summer, when production runs high. Winner: net metering, in most utility territories where it is offered.
How Much Control You Have Over Your Bill
Net metering can make a bill look near zero in spring and fall, which is convenient but can hide how much power you are really exporting. Gross metering shows each flow separately, so you can see exactly what your panels produce and what you consume. Winner for tracking performance: gross metering. Winner for simplicity: net metering.
Pros & Cons
Net Metering
- Pro: Exports offset your usage at full retail value, so surplus power earns close to what you pay.
- Pro: One net figure on the bill keeps monthly budgeting predictable.
- Con: Excess credits may expire or be paid out at a lower rate, depending on the utility’s rules.
Gross Metering
- Pro: Every exported kWh is recorded and paid, with no credit carryover to track.
- Pro: Separate import and export readings make system performance easy to verify.
- Con: Export rates are often lower than retail, which reduces the value of surplus power.
Which Should You Choose?
Pick based on how your home uses the power your roof makes.
- Choose net metering if you use solar power in the evening and overnight, export mainly at midday, and want your bill to reflect real net usage. Many home solar setups fit this profile. View on Amazon
- Choose gross metering if you export most of what your system makes, your utility pays a fair export rate, and you want each flow tracked separately. A monitoring device helps you compare the two readings. View on Amazon
Before deciding, read how your utility handles credit rollover in Net vs Gross Metering: Which Solar Billing Setup Pays Your Home More? and compare the two methods in Net Metering vs Gross Metering vs Net Billing: Which Pays Your Home Solar Best?. For a plain-English definition of the credit system, see What Is Net Energy Metering? How It Credits Your Home Solar.
FAQ
Can I switch from net metering to gross metering?
Possibly, but it depends on your utility and state rules. Some programs let you change billing options at renewal, while others lock you in for a set term. Contact your utility before assuming a switch is allowed.
Does net metering always give a better bill?
Not always. If your utility sets a low retail rate or limits credit value, gross metering with a strong export rate may come out ahead for a particular home. Compare both numbers using a year of production and usage data.
Do I need special equipment for either option?
Your utility usually installs the required meter. A separate monitoring device is optional but useful for checking exports and imports. A licensed electrician or your installer can confirm what your interconnection requires.
Conclusion
For most homeowners, net and gross metering solar setups are decided by how much power you export and what your utility pays for it. Net metering suits homes that want exports to offset their usage at near-retail value. Gross metering rewards large exporters who want every kilowatt-hour tracked and paid on its own terms.
About Ethan Brooks
Ethan Brooks is part of our editorial team and reviews and edits our home solar guides, checking product details against manufacturer specifications and owner feedback.
