What is net metering?

Net metering lets solar owners send surplus electricity to the grid and receive a credit on their bill. The credit offsets future grid purchases, effectively running the meter backward when you overproduce and forward when you draw power at night or on cloudy days.

What if my credit rate is lower than my retail rate?

Many utilities pay a reduced "avoided-cost" or "wholesale" rate for exported solar — sometimes 30–60% of the retail rate. This calculator lets you set each rate independently so you can model that gap accurately.

What are "avoided grid kWh"?

When solar production covers household consumption, you avoid buying that electricity at the full retail rate. This self-consumption saving is usually more valuable than the export credit, so maximizing it first makes financial sense.

Why does the calculator use monthly averages?

Net metering credits typically reset monthly or annually depending on the utility. Using a single average month and multiplying by 12 gives a reasonable annual estimate. For a precise month-by-month model, use your actual production and consumption data per month.

Does this include taxes, fees, or minimum bill charges?

No. Many utilities apply a fixed monthly customer charge regardless of solar output, and some cap net metering credits. This calculator shows gross savings from avoided usage and export credits only.

Net Metering Savings Calculator

Enter your monthly solar output, household usage, retail rate, and net metering credit rate to see how much you save annually.

Solar & Usage Inputs

Monthly Solar Production (kWh)

Average monthly output from your solar system

Monthly Household Consumption (kWh)

From your utility bill (US average ~900 kWh/month)

Retail Electricity Rate ($/kWh)

Price you pay for grid electricity

Net Metering Credit Rate ($/kWh)

Rate your utility credits for exported solar (often lower than retail)

Enter your values and click Calculate Savings

Summary

Enter your monthly solar output, household usage, retail rate, and net metering credit rate to see how much you save annually.

How it works

Enter your estimated monthly solar production in kWh (from your system specs or monitoring app).
Enter your monthly household electricity consumption in kWh (from your utility bill).
Set your retail electricity rate — the price you pay per kWh when buying from the grid.
Set the net metering credit rate your utility pays for excess solar you export.
Read the annual savings breakdown: grid energy avoided, export credit earned, and total savings.

Use cases

Estimate payback improvement when shopping for a rooftop solar system.
Compare net metering value across different utility rate structures.
Understand how increasing self-consumption vs. exporting affects your savings.
Budget annual electricity savings before filing a solar incentive application.
Check whether a battery storage upgrade makes sense given your current export credit rate.

Frequently Asked Questions

Last updated: 2026-09-22 · Reviewed by Nham Vu