Claire WhitakerBy Claire Whitaker

Updated November 2026

A net metering credit agreement is the contract between your home solar system and your utility that defines how the electricity you send back to the grid is valued and credited to your account. This guide walks you through what the agreement covers, what to verify before you sign, and how to confirm your credits are being applied the way the contract says. The steps apply in most US service territories, though the exact terms depend on your utility and state.

What the Agreement Actually Controls

Most homeowners assume net metering is a single rule, but the agreement sets the specifics for your home. It usually defines the export credit rate, how credits roll forward from month to month, and what happens to any balance left at the end of the billing year. Some utilities also specify how your system size is measured and which charges, such as fixed monthly fees, still apply. Read these terms before anything else. Our overview of Net Metering by State: Rules, Credits and What to Check (2026) explains how these rules vary from state to state.

Shopping for one? See our guide: Net Metering Connection Agreement (2026): Which Should You Choose?.

Step-by-Step: Reviewing the Agreement Before You Sign

  1. Confirm the credit rate. Find whether exported energy is credited at the retail rate, a lower avoided-cost rate, or a time-of-use rate that changes by hour.
  2. Check the rollover policy. Note whether excess credits carry into the next month, and whether any unused balance expires at the annual true-up.
  3. Verify your system details. The agreement should list your panel capacity, inverter model, and interconnection point. Errors here can affect your credits later.
  4. Identify fixed charges. Some utilities keep a monthly grid connection fee even when your bill is near zero.
  5. Ask about the true-up date. This is the day your utility settles accumulated credits against your usage.

How Credits Show Up on Your Bill

Once the system is interconnected, your utility’s meter records energy flowing in both directions. In a typical month, you import power at night and export surplus during midday sun. The export is subtracted from your import, and you pay only for the net difference, unless your balance is negative in which case the credit carries forward. Owners often report that the first few bills look confusing because the summary shows separate import, export, and credit lines. Compare the kilowatt-hour totals on each line with your inverter’s monitoring app to confirm they roughly match.

Tracking Your Numbers Month to Month

Keep a simple log of your bill’s import and export totals alongside your inverter’s production data. If the utility’s export figure is consistently much lower than what your inverter reports, ask for a meter inspection. Small gaps from timing differences are normal, but a persistent gap of more than a few percent deserves a written question to your utility.

Common Mistakes to Avoid

  • Signing before the interconnection application is approved, which can delay your credits.
  • Assuming all exported energy earns the same rate. Time-of-use structures can make midday exports worth less.
  • Ignoring the true-up date and letting a large credit balance expire.
  • Changing your system size or adding panels without notifying the utility, which can void the agreement’s terms.
  • Overlooking the fixed monthly charge when estimating savings.

A revenue-grade monitoring device helps you check the utility’s export figures against your own data. Look for a meter that logs import and export separately. View on Amazon is one example of a home energy monitor that tracks circuit-level usage and solar production. A small clamp-on power meter is also useful for verifying the output of an individual inverter string. View on Amazon is a common option for spot-checking appliance and system readings.

FAQ

Can I change the terms of my net metering credit agreement later?

Generally, terms are set when the agreement is signed and may change only if your state or utility adopts new rules. Some utilities require a new application if you significantly increase system size.

What happens to credits if I move?

Most agreements are tied to the service address, so unused credits typically do not transfer. Check your contract and use up or document the balance before you move.

Who should I contact if my credits look wrong?

Start with your utility’s billing department in writing, and include your monitoring data. If the issue is not resolved, your state public utility commission can review the complaint. A licensed electrician or solar installer can also check your system’s equipment if a hardware fault is suspected.

Conclusion

A net metering credit agreement determines how much your solar exports are worth, so reading it closely before signing is worth the time. Confirm the credit rate, rollover rules, and true-up date, then track your monthly numbers against your inverter data. If something looks off, raise it in writing early.

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.