By Claire WhitakerUpdated November 2026
Is net metering going away? In many states, the answer is “not yet, but it’s changing.” Net metering, the long-standing policy that credits homeowners at the full retail rate for solar electricity sent back to the grid, is being replaced in several places by net billing, which pays a lower export rate. For homeowners who are still early in their solar planning, net metering usually wins on credit value, while net billing can still work well for homes that size their system around their own use and battery storage.
| Criteria | Net Metering | Net Billing |
|---|---|---|
| How exported power is valued | Credited at or near the full retail rate | Credited at a lower avoided-cost or time-varying export rate |
| Availability | Still offered in many states, but caps and phase-outs apply in some | Replacing net metering in several utility territories |
| Payback for oversized systems | Generally faster | Generally slower |
| Value of battery storage | Helpful but less critical | Often essential to get good value |
| Billing complexity | Simple monthly netting | More complex, often with hourly or time-of-use rates |
| Best fit | Homes that export a lot of power | Homes that use most of what they generate |
What Net Metering Means Today
Under traditional net metering, your meter spins backward when your panels push power to the grid, and you receive a bill credit that offsets what you draw later. Many utilities set the credit at the same rate you pay for electricity. That one-to-one value is the core reason net metering has driven residential solar growth for decades.
Net metering is not disappearing everywhere at once. Each state regulator and utility sets its own rules, and many have grandfathered existing customers. If you are asking whether net metering is going away in your area, start with your utility’s tariff documents and your state public utility commission’s website. Check whether the policy applies to new interconnections, whether it has a cap on total enrolled capacity, and whether there is a date when new customers move to a different structure.
For a deeper look at how credits are calculated, see Solar PV Net Metering Explained: How It Works and Credits Your Bill and What Is the Benefit of Net Metering for Home Solar Owners?
What Net Billing Changes
Net billing keeps the basic idea of exporting surplus power, but it values that power differently. Instead of crediting you at the retail rate, the utility may pay an export rate tied to wholesale or avoided costs. Some net billing tariffs also vary the export rate by hour, paying more during peak demand and less overnight.
That shift has a practical effect. A system sized to cover your annual use with a large export surplus will earn less under net billing. A system sized closer to your daytime use, paired with a battery that stores midday production for evening use, will lose far less value. This is why installers in net billing territories often recommend smaller arrays and storage rather than maximum-size systems.
Utilities in several regions have used the transition to net billing as a chance to adjust fixed charges and grid access fees. Read those line items carefully before comparing offers, because a lower export rate combined with higher fixed charges can change your savings more than the headline rate suggests.
Which Option Gives Better Credit Value? Winner: Net Metering
On export value alone, net metering wins clearly. A kilowatt-hour sent to the grid at retail rate offsets a kilowatt-hour you would otherwise buy at retail rate, so every exported unit has full value. Under net billing, the same kilowatt-hour may earn a fraction of that. If your roof produces far more than you use over the year, net metering is the better structure.
Keep in mind that some net metering programs cap the total credit, limit system size to a percentage of your annual use, or apply monthly credit rollover limits. What Is Net Metering Cap? A Homeowner's Guide to Limits (2026) explains how those restrictions work.
Which Is Simpler to Understand? Winner: Net Metering
Net metering is easier to follow. You generate, you export, the meter nets the flow, and your bill shows a credit or a balance due. Net billing often adds hourly export rates, time-of-use windows, and separate line items for generation. Reading a net billing statement takes more effort, and it is worth checking against your own usage data each month.
If you want help decoding a statement, Solar Net Metering Bill Example PDF: How to Read Yours Step by Step walks through a sample bill line by line. If your bill is still high despite solar, Why Is My Net Metering Electricity Bill Still High? 6 Causes and Fixes covers common reasons.
Which Works Better With Batteries? Winner: Net Billing
Battery storage is where net billing becomes more competitive. When exports are paid at a low rate, storing midday production and using it during expensive evening hours can recover more value than exporting it. A hybrid inverter with a battery and a clear self-consumption setting is often the centerpiece of a net billing design. The Top 7 Hybrid Inverters with Net Metering Options for Homeowners article covers inverter choices, though you should confirm each model’s compatibility with your utility’s interconnection rules.
Under net metering, a battery still has uses, such as backup power during outages and shifting usage to match time-of-use rates. But it is less essential to the financial case.
Which Is More Stable Long Term? Winner: Net Metering (Where Still Available)
Where net metering remains in place, it offers more predictable value. Net billing tariffs can be revised, and time-varying export rates can shift when regulators update avoided-cost calculations. Homeowners who choose net billing should model their savings under a range of export rates and expect that the policy may change again.
Programs that are closing to new customers may still offer grandfathered terms for existing systems. Confirm your effective date in writing before you sign a contract. Shared and community options also exist; What Is Group Net Metering? How Shared Solar Credits Work explains one alternative for renters and homeowners who cannot install panels.
Which Should You Choose?
The right answer depends on where you live, how much power you use, and whether you plan to add storage.
- Choose net metering if your state still offers it, you expect your system to produce more than you use over the year, and you want simple monthly credits.
- Choose net billing if that is the only option available to you, but design the system around self-consumption, sizing the array closer to daytime use.
- Add battery storage if you are under net billing and your evening use is high, since storage helps capture value that would otherwise be exported cheaply.
- Wait to confirm your options if your utility has an open proceeding on its tariff, because rules may change before your installation date.
- Compare utilities directly. Territory matters a great deal. Examples include Pacific Power Net Metering (2026): Which Is Better for Your Home? and Rocky Mountain Power Net Metering (2026): Which Is Better for Your Home?, which show how one provider’s terms differ from another’s.
Equipment Options
For a traditional net metering setup, a standard grid-tied string inverter or microinverter system is typically enough. Manufacturers specify that microinverters handle partial shading better, which can matter on complex roofs.
For net billing with storage, look at hybrid inverters and a compatible battery. Your installer should confirm the setup meets your utility’s interconnection standards. Some common examples of equipment to research include:
- Enphase IQ8 Microinverter (for net metering or net billing arrays where per-panel monitoring is useful) View on Amazon
- SolarEdge Home Battery (for storage paired with a compatible inverter) View on Amazon
- Tesla Powerwall 3 (a whole-home battery often specified in net billing designs) View on Amazon
Product choice should follow your installer’s design and your utility’s approved equipment list, not a buying guide alone.
FAQ
Is net metering going away everywhere?
No. Some states and utilities are replacing it with net billing or closing it to new customers, while others still offer it. Check your state regulator and utility tariff for the current rules in your territory.
If net metering ends, do I keep my existing system’s credits?
Usually existing customers are grandfathered for a period, but terms vary. Ask your utility in writing whether your interconnection date locks in the current structure.
Is net billing always a bad deal?
Not always. Homes that use most of their solar output on site, especially with a battery, can still get good value. The math depends on your export rate, your usage pattern, and your system size.
Does a battery make sense under net metering?
It can, for backup power and for shifting usage to match time-of-use rates. It is generally less central to the financial case than it is under net billing.
Should I talk to a professional before deciding?
Yes. A licensed solar installer and, where possible, a utility representative can model your savings under each structure. Financial and contract decisions are significant, so consider a second opinion before signing.
Conclusion
Is net metering going away? Not uniformly, but many utilities are moving toward net billing. If you can still choose net metering, it usually delivers better credit value for homes that export a lot. If net billing is your only option, design around self-consumption and consider storage. Verify your utility’s current tariff, confirm the effective dates, and get a written estimate based on your own usage data before you commit.
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.
