Net Metering Calculator — How Much Will You Earn Selling Solar Back?
Calculate how much money you earn selling excess solar electricity back to the grid through net metering. See annual credits and true bill reduction.
· Free · No signup required
How to use this calculator
- Enter your solar system size in kW.
- Set your daily peak sun hours (use the state selector for your location).
- Enter your electricity buy rate and net metering export rate.
- Set what percentage of solar output you use directly at home.
- See your annual grid credits and net bill reduction.
Understanding your results
How net metering credits are calculated: Your utility measures two separate meter readings — electricity consumed from the grid and electricity exported to the grid. Your bill credits exports at the net metering rate (which varies by state and policy). The calculator shows both the value of electricity you use directly (avoided purchase) and the credits earned for exports.
Full retail vs avoided-cost net metering: Under full retail net metering, you receive credits equal to what you pay per kWh — typically $0.12–0.40. Under avoided-cost (wholesale) metering, you receive only what the utility pays for bulk power — typically $0.03–0.08/kWh. The difference is enormous: a system exporting 5,000 kWh/year earns $600–$2,000 under retail NEM, but only $150–$400 under avoided-cost metering.
NEM 3.0 and the California shift: California’s NEM 3.0 (effective April 2023) reduced export rates by 75% for most customers — from $0.28–0.35/kWh to $0.05–0.08/kWh. This fundamentally changed solar economics in California: self-consumption now returns 4–6× more value than grid export. NEM 3.0 makes battery storage economically essential for new California solar installations, as batteries shift midday production to the high-rate 4pm–9pm peak window.
Self-consumption optimisation: Each 10 percentage point increase in self-consumption rate adds meaningful annual value when your buy rate exceeds your export rate. Strategies to increase self-consumption without a battery: (1) Schedule EV charging and high-load appliances 10am–2pm. (2) Set water heater to heat during solar peak hours. (3) Pre-cool home before peak hours. These changes can raise self-consumption from 30% to 50–60% without any additional hardware cost.