Net Metering
A billing policy that credits solar owners at the retail electricity rate for the surplus energy their PV system exports to the grid, offsetting what they consume from the grid at other times.
Net metering is the regulatory mechanism most commonly used for residential and small commercial PV. A bidirectional utility meter records both import and export, and the customer is billed on their net consumption over a settlement period, typically monthly or annually. Compensation usually happens at the retail electricity rate, though many jurisdictions are transitioning to net billing schemes that pay export at wholesale or avoided-cost rates.
The policy varies widely by country and even by utility within the same country. Understanding the local settlement period, the export compensation rate, and any monthly minimum bill is critical when sizing a system and quoting payback.
Why it matters for solar installers
Net metering determines the effective value of every exported kWh in your proposal. A system sized for high self-consumption looks very different from one sized for export under net metering, and installers working across multiple utilities need their proposal tool to reflect the local rules. solarVis surfaces the correct tariff model per country so your ROI numbers match what the customer will actually see on their bill.
Common questions
- Is net metering the same as a feed-in tariff?
- No. A feed-in tariff pays a fixed per-kWh price for every exported unit, regardless of onsite consumption. Net metering only compensates the net amount exported after onsite use has been netted off.
- How does net metering change proposal payback?
- It values exports at the retail rate rather than the wholesale rate, which typically shortens residential payback by two to three years compared with export-at-avoided-cost regimes.
- What happens to surplus credits at the end of a settlement period?
- Rules vary by jurisdiction. Some utilities roll credits forward indefinitely, others true up monthly or annually and pay remaining credits at the wholesale rate.
