By Claire WhitakerUpdated November 2026
A net metering customer is a utility customer whose home or business generates its own electricity, usually with rooftop solar, and sends any extra power back to the grid. In return, the utility credits that customer’s account for the exported energy. This guide explains what the term means, how the credit system works, and what you need to do to become one.
What a Net Metering Customer Actually Is
The term describes a relationship between you and your utility, not a type of solar panel. You become a net metering customer when your utility approves your system for interconnection and enrolls your meter in a net metering program. Your meter then records electricity flowing in both directions: power you pull from the grid and power your panels push back out.
Shopping for one? See our guide: Net Metering in Virginia vs Virginia Community Solar: Which Should You Choose?.
Most programs require that your system be sized to offset your own use, often at or below your annual consumption. Some utilities also limit system size to a set kilowatt rating for residential customers. Check your utility’s tariff sheet for the exact limit.
How the Credits Are Calculated
At the end of each billing period, the utility nets your exported and imported kilowatt-hours. If your panels sent 600 kWh to the grid and you drew 450 kWh, you have 150 kWh of credit. Depending on your state and utility, those credits may roll forward to the next month or be trued up once a year.
Credit value varies. Some programs credit exported energy at the full retail rate. Others use a lower export rate, which is why a net metering customer in one state can see a very different bill from a neighbor in another. For background on how these rules differ, read Net Metering by State: Rules, Credits and What to Check (2026).
Steps to Become a Net Metering Customer
The process is largely administrative, but skipping a step can delay your credits by months. Work through it in order.
- Confirm your utility offers net metering for residential systems and note any capacity limits.
- Size your system to your annual usage using 12 months of past bills.
- Submit an interconnection application before installing or energizing the system. Most utilities require approval first.
- Install the system using a licensed electrician or installer and pass the required inspection.
- Sign the net metering agreement and confirm that your meter is bidirectional or has been replaced.
- Watch your first two or three bills to verify that exported energy is being credited correctly.
Before you sign anything, make sure you understand your utility’s terms. A related issue is the difference between net metering and net billing, which can change how your exports are valued. See Net Metering and Net Billing Difference: What Homeowners Need to Know for a side-by-side comparison.
Rights and Responsibilities
As a net metering customer, you generally have the right to a credit for exported energy, a clear statement of how credits are calculated, and a standard interconnection process. You are also responsible for keeping your system maintained, notifying the utility of major changes, and meeting safety standards.
Programs can change. Legislatures and regulators have revised net metering rules in several states, and some have added fees or reduced export rates. Staying informed matters. Net Metering News Today: What Changed and How It Affects Your Solar Bill tracks recent updates.
Quick Reference
| Item | What It Means for You |
|---|---|
| Bidirectional meter | Records both imports and exports |
| Monthly netting | Exports offset imports within each billing cycle |
| Annual true-up | Unused credits are settled once a year |
| Export rate | Determines the value of each exported kWh |
Common Mistakes to Avoid
- Energizing your system before utility approval, which can void your interconnection.
- Oversizing the system well beyond your annual use, which may leave credits unused.
- Ignoring fixed monthly charges that still apply even with a credit balance.
- Assuming the rules stay the same after you enroll. Check your agreement for changes.
- Skipping regular bill reviews, so errors in credit calculations go unnoticed.
FAQ
Do I need a special meter to be a net metering customer?
Most utilities require a bidirectional meter that tracks exported energy separately. Some older meters can be replaced at no or low cost once your application is approved.
Can a renter become a net metering customer?
Generally, the account holder for the property must be the one who applies. Renters typically need the landlord’s written consent and the utility’s approval for the installation.
Does being a net metering customer raise my electric bill?
Your bill will still include fixed charges and may include other fees. Whether your total bill falls depends on your system size, usage pattern and your utility’s export rate. Consult your utility or a licensed solar professional before deciding.
Conclusion
A net metering customer is a homeowner whose solar system feeds the grid and earns bill credits under an approved utility program. Qualifying depends on proper sizing, utility approval and a correct meter setup. Review your utility’s current terms before you install, and check your bills regularly to confirm the credits are right.
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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.
