Claire WhitakerBy Claire Whitaker

Updated November 2026

A net metering bill is calculated by subtracting the electricity your solar system sends back to the grid from the electricity you pull from the grid during the same billing period. You then pay for any net usage at your retail rate, and any surplus usually becomes a credit. This guide walks through how net metering bill is calculated, line by line, so you can check your own statement with confidence.

Step 1: Know the Two Meter Readings

Your utility tracks energy flowing in two directions. The first is imported energy, the kilowatt-hours (kWh) your home draws from the grid when your panels aren’t producing enough. The second is exported energy, the kWh your system sends to the grid when production exceeds your household use. Many modern meters record both values separately, while older setups may use a single meter that spins backward during export.

Shopping for one? See our guide: Dominion Power Net Metering (2026): How It Works and Who Benefits.

Step 2: Net the Usage Over the Billing Period

Next, the utility subtracts exports from imports for the whole billing cycle, not hour by hour. Suppose you import 650 kWh in a month and export 400 kWh. Your net usage is 250 kWh. Because netting happens over the cycle, midday surplus can offset evening consumption, which is the core benefit of the arrangement. For another angle, check out Net Metering Solar Inverter: How It Works and How to Size One.

Step 3: Apply the Right Rate to Net Usage

The net figure is then multiplied by the rate on your rate schedule. Many residential plans use a tiered or time-of-use structure, so a single kWh may be priced differently depending on when it was used. Some utilities also apply fixed monthly charges, such as a customer or grid access fee, that are added regardless of net usage. Check whether your utility bills exported energy at the retail rate, a lower avoided-cost rate, or a mix of both, because that choice drives your final number.

Step 4: Handle Surplus Credits

If you export more than you import in a cycle, the leftover kWh typically becomes a bill credit or rolls forward to the next month. Rules differ widely. Some utilities carry credits indefinitely, while others pay out the remaining balance once a year at a lower rate. Look for a line labeled “net excess generation” or “carryover kWh” to see what happened to your surplus.

Factors That Change the Result

Factor Effect on Your Bill
Time-of-use rates Exports at peak hours may be worth more than off-peak
Export rate type Retail-rate netting favors you more than avoided-cost credits
Fixed monthly charges Apply even when net usage is near zero
Carryover policy Determines whether surplus expires or rolls forward

Checklist for Reading Your Bill

  1. Record imported and exported kWh from your meter data.
  2. Subtract exports from imports to get net usage.
  3. Match each kWh block to its rate tier or time-of-use period.
  4. Add fixed charges and any taxes or riders.
  5. Note any credit balance carried into the next cycle.

For a worked example with real line items, see Net Metering Bill Example: How to Read Each Line of Your Solar Bill. Each utility uses its own terminology, so Solar Net Metering Bill Example PDF: How to Read Yours Step by Step can help you match labels to the calculation above.

Common Mistakes

  • Comparing a single month’s bill to last year’s without accounting for weather and seasonal production.
  • Assuming exports are credited at the same rate as imports, when many plans value them differently.
  • Overlooking fixed charges, which can make a near-zero net usage month still show a balance due.
  • Ignoring a carryover balance that quietly offsets the current bill.
  • Forgetting that a system sized for annual production may over-export in spring and under-export in winter.
  • Smart energy monitor: A whole-home monitor that tracks import and export in real time helps you verify the numbers your utility reports. View on Amazon
  • Clamp-on current meter: Useful for checking individual circuits when you want to see where usage is coming from. View on Amazon

FAQ

Is net metering billed monthly or annually?

Most utilities net usage monthly, but some use annual true-up periods. Your rate schedule or net metering tariff will state which applies to your account.

Why is my bill not zero even though I export power?

Fixed monthly charges, grid access fees and taxes often remain even when net kWh is small. Check whether these are separate from energy charges on your statement.

How is net metering bill is calculated differently across states?

Each state sets its own export rate, carryover rules and fee structure, so the same production can produce different bills. Your utility’s tariff document is the authoritative source.

Conclusion

A net metering bill comes down to netting imports against exports over each billing period, then applying your rate schedule to what remains. Once you know how each factor fits, your statement becomes much easier to read. If anything on your bill doesn’t match this method, contact your utility and ask for a line-by-line explanation.

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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.