Net metering by state

What your utility pays for the solar power you don't use is one of the biggest factors in whether solar pays. Here's every state's rule as of October 2026.

Green: exports earn at or near retail. Yellow: partial credit. Red: low credit (well under half of retail). Rules can differ by utility; see each state page.

Net metering explained

Value of exported solar, typical utility

State	Policy	Export value	Netting	Summary
Alabama	No statewide net metering	3¢	instantaneous	Alabama has no net metering law. Alabama Power buys any electricity you send to the grid at a low wholesale (avoided-cost) price. It also charges solar customers a monthly 'capacity reservation' fee of about $5.41 per kW of system size, which a federal judge let stand in March 2026.
Alaska	Avoided-cost export credit	35%	monthly	Larger regulated Alaska utilities must offer net metering for small systems, but you are credited for electricity you send to the grid only at the utility's 'non-firm' (avoided-cost) rate, which is much lower than what you pay. Utilities can stop accepting new net-metered systems once they hit a 1.5% cap.
Arizona	Net billing (reduced export credit)	5.554¢	instantaneous	For APS, TEP and UNS customers, electricity you use directly saves you the full retail rate, but power you send to the grid is credited at a lower 'export rate' that is locked for 10 years from when you connect. The export rate drops up to 10% each year for new customers; it is about 5.55 cents for APS (Sept 2026 tranche) and 4.62 cents for TEP (Oct 2026 tranche). SRP, a public utility, has its own solar price plans.
Arkansas	Avoided-cost export credit	30%	monthly	Under Act 278 of 2023, new solar customers (applications after Sept 30, 2024) still offset their own usage at retail, but any excess electricity sent to the grid is credited only at the utility's avoided cost, often under half of retail. Customers who connected earlier keep 1:1 retail credit through 2039-2040.
California	Net billing (reduced export credit)	4¢	instantaneous	New customers of PG&E, SCE and SDG&E are on the Net Billing Tariff (often called NEM 3.0): solar you use at home saves the full retail rate, but power you send to the grid is credited at hourly 'avoided cost' values that average only about 4-5 cents/kWh (higher on summer evenings). Batteries greatly improve the economics. Municipal utilities like LADWP and SMUD set their own rules.
Colorado	Full retail net metering	Retail	monthly	Colorado requires investor-owned utilities like Xcel Energy to credit solar exports at the full retail rate, with credits rolling over month to month indefinitely. Co-ops and large municipal utilities must also offer net metering, though their rules and size limits differ.
Connecticut	Full retail net metering	Retail	monthly	Connecticut replaced traditional net metering in 2022 with the Residential Renewable Energy Solutions (RRES) program. Homeowners choose either a 'netting' option (monthly net metering at retail with an added payment for renewable energy credits) or a 'buy-all' option (all production sold to the utility at a fixed 20-year rate). A 2026 law extended the program through 2035.
Delaware	Full retail net metering	Retail	monthly	Delaware requires all utilities to offer net metering: exports earn full retail kWh credits that roll over month to month, with an annual true-up. Residential systems are capped at 25 kW.
District of Columbia	Full retail net metering	Retail	monthly	DC offers net metering through Pepco: exported electricity earns bill credits that roll over indefinitely. DC also has one of the most valuable solar REC (SREC) markets in the country, roughly $360 per MWh in 2026.
Florida	Full retail net metering	Retail	monthly	Florida's investor-owned utilities (FPL, Duke Energy Florida, TECO) must offer full retail net metering: exports earn kWh credits that roll over for up to 12 months, then any leftover is paid at a low avoided-cost rate. Municipal and co-op utilities set their own terms, and some pay less.
Georgia	Reduced export credit	7.22¢	instantaneous	Georgia has no full net metering for new customers. Georgia Power credits solar you use at home at retail, and pays about 7.2 cents/kWh in 2026 for power sent to the grid (its solar avoided cost plus a 4-cent adder). Its monthly net metering program is full and closed. Electric membership cooperatives (EMCs) generally pay avoided cost.
Hawaii	Net billing (reduced export credit)	13.5¢	instantaneous	Hawaiian Electric ended net metering for new customers in 2015. New systems use the Smart DER tariff, which pays time-varying rates for exports: on Oahu about 13.5 cents midday, 18.9 cents overnight and 32.9 cents in the 5-9 pm peak. Because midday exports earn the least, most new systems include batteries. A battery program (BYOD) adds upfront and monthly payments.
Idaho	Varies by utility	4.5¢	varies	Idaho has no statewide net metering law; each utility's rules are set by the PUC. Idaho Power moved new customers to real-time net billing, paying time-varying export rates (for June 2025-May 2026 roughly 15.7 cents on summer peak but about 3 cents most of the year). Avista still offers net metering; Rocky Mountain Power's Idaho terms have been under review.
Illinois	Reduced export credit	9¢	monthly	For ComEd and Ameren customers who connected on or after Jan 1, 2025, solar exports only offset the energy supply part of the bill (about 8-12 cents/kWh), not delivery charges. To compensate, the state pays an upfront $300 per kW rebate for solar with a smart inverter, and Illinois Shines pays for solar renewable energy credits.
Indiana	Reduced export credit	5.43¢	instantaneous	Indiana ended net metering for new customers in mid-2022. Under 'Excess Distributed Generation' (EDG) billing, solar you use at home offsets retail, but any electricity sent to the grid is credited at about 1.25 times the utility's wholesale energy price (AES Indiana: about 5.4 cents/kWh as of July 2026).
Iowa	Full retail net metering	Retail	varies	Iowa's two investor-owned utilities (MidAmerican and Alliant) credit solar exports at the retail energy rate through net billing or inflow-outflow billing. Customers who connect before a future value-of-solar rate takes effect (by July 2027 at the latest) keep retail-rate export credit for 20 years.
Kansas	Reduced export credit	3¢	monthly	Kansas requires Evergy and Liberty (Empire) to offer net metering. Solar you use offsets retail, and monthly excess offsets usage, but net excess at the end of a billing period is credited at the utility's average cost of energy (only a few cents/kWh) rather than retail. Co-ops and city utilities aren't required to offer it.
Kentucky	Net billing (reduced export credit)	7.5¢	varies	Kentucky requires net metering for systems up to 45 kW, but since SB 100 (2019) the PSC sets the export credit in each utility's rate case. For the big investor-owned utilities, power you send to the grid earns a bill credit of roughly 7-10 cents/kWh, well below the retail rate.
Louisiana	Avoided-cost export credit	3.86¢	instantaneous	Outside New Orleans, new solar customers since 2020 are credited for exported power at the utility's avoided cost, about 3.6-4 cents/kWh, versus retail rates of ~11-13 cents. Customers who interconnected before 2020 were grandfathered at retail for 15 years. New Orleans (City Council-regulated) still offers retail net metering.
Maine	Full retail net metering	Retail	monthly	Homeowners with rooftop solar in Maine get kWh-for-kWh net energy billing (NEB): each exported kWh offsets a kWh you buy later. Credits roll month to month but expire after 12 months. The 2025 reform law (LD 1777) targeted commercial/community NEB and did not change behind-the-meter rooftop terms.
Maryland	Full retail net metering	Retail	monthly	Maryland currently offers full retail net metering: exports earn a full kWh credit. However, the 2026 Utility RELIEF Act closes the existing program to new enrollees by July 1, 2027 (or when the 3 GW cap is hit) and directs a lower-compensation successor ('NEM 2.0') to start July 1, 2027.
Massachusetts	Full retail net metering	Retail	monthly	Massachusetts investor-owned utilities credit residential solar exports at close to the full retail rate (net metering credits), and credits roll over indefinitely. On top of that, the SMART 3.0 program pays a fixed per-kWh incentive for 20 years.
Michigan	Net billing (reduced export credit)	9¢	instantaneous	Michigan's IOUs use a 'distributed generation' inflow/outflow tariff: you save the full retail rate on solar you use directly, but power sent to the grid is credited only at roughly the power-supply portion of the rate (about 8-15 cents depending on rate/time).
Minnesota	Full retail net metering	Retail	monthly	Minnesota requires utilities to net meter systems under 40 kW; monthly excess is paid or credited at the 'average retail utility energy rate', which is close to retail (excludes fixed charges). This applies to IOUs, co-ops and munis, although co-ops/munis may add a monthly DG fee.
Mississippi	Net billing (reduced export credit)	6¢	instantaneous	Mississippi's Net Renewable Generation rules pay for exports at the utility's avoided cost plus a 2.5 cent/kWh adder (plus 2 cents more for low/moderate-income households). That works out to well below retail. Netting is effectively instantaneous via dual-channel metering.
Missouri	Avoided-cost export credit	4.5¢	monthly	Missouri's net metering law nets usage and production within each monthly bill at full retail, but any net excess for the month is credited only at the utility's avoided fuel cost (a few cents/kWh), and unused credits expire after 12 months. Systems are capped at 100 kW.
Montana	Full retail net metering	Retail	monthly	NorthWestern Energy customers get kWh-for-kWh net metering for systems up to 50 kW. Excess kWh roll forward monthly but are zeroed out (forfeited) at the annual anniversary.
Nebraska	Avoided-cost export credit	4¢	monthly	Nebraska (all public power) requires net metering for systems up to 25 kW; usage is netted monthly and any monthly excess is credited at the utility's avoided cost, with remaining credits paid out at year-end.
Nevada	Reduced export credit	8.7¢	varies	NV Energy credits exported solar at 75% of the retail energy rate (Tier 4, locked for 20 years). In September 2025 regulators approved 15-minute netting for new Northern Nevada (Sierra Pacific) customers from Oct 1, 2025, which sharply reduces how much usage solar can offset at full price; Southern Nevada (Nevada Power) gets a new demand charge from April 2026.
New Hampshire	Reduced export credit	85%	monthly	Under New Hampshire's 'net metering 2.0' (since 2017), exported power is credited at the full supply and transmission rate but only 25% of the distribution charge - roughly 80-90% of retail. Systems in place are guaranteed these terms until 2040/2041.
New Jersey	Full retail net metering	Retail	monthly	New Jersey offers full retail net metering with monthly rollover and an annual true-up, where leftover credits are paid at a low wholesale rate. Homeowners also earn SREC-IIs under the ADI program: $85/MWh for registrations through July 26, 2026 and $77/MWh after, fixed for 15 years.
New Mexico	Varies by utility	26%	monthly	For systems up to 10 kW, New Mexico utilities either carry forward excess kWh credits or pay for them at avoided cost; most small residential systems effectively get retail offset for self-use and monthly netting. Larger systems get avoided cost for excess.
New York	Full retail net metering	Retail	monthly	New York residential solar uses 'Phase One' net metering: exports earn full retail kWh credits that roll forward, but new customers since 2022 pay a monthly Customer Benefit Contribution (CBC) charge of roughly $0.70-$1.30 per kW of system size.
North Carolina	Net billing (reduced export credit)	3.5¢	monthly	Duke Energy's new solar customers choose between the 'Bridge Rate' (retail-style net metering, open until Jan 1, 2027 or caps fill) and Residential Solar Choice, which requires a time-of-use rate and credits monthly net exports at avoided cost (~3.4-4 cents). Both include a minimum bill.
North Dakota	Avoided-cost export credit	3¢	monthly	North Dakota's net metering rule only covers the three investor-owned utilities (Xcel, Otter Tail, Montana-Dakota) for systems up to 100 kW. Solar you use at home offsets retail power, but extra energy left over each month is bought at the utility's low avoided-cost rate (a few cents per kWh).
Ohio	Reduced export credit	8¢	monthly	Ohio's investor-owned utilities must offer net metering. Within a month, solar offsets your usage at full retail; any extra energy beyond your monthly use is credited only at the generation (energy supply) price, roughly half of the retail rate.
Oklahoma	Avoided-cost export credit	2.5¢	monthly	Oklahoma requires net metering, but only your same-month usage is offset at retail. Any excess left at the end of the billing period is bought at the utility's avoided cost, typically just a few cents per kWh.
Oregon	Full retail net metering	Retail	annual	Oregon's big utilities (PGE, Pacific Power, Idaho Power) offer true 1:1 net metering. Extra credits roll forward month to month, but anything left at the annual true-up is donated to low-income assistance rather than paid out.
Pennsylvania	Full retail net metering	Retail	annual	Pennsylvania's electric distribution utilities offer full retail net metering for home systems up to 50 kW. Excess kWh roll over each month, and any surplus left at the end of the June-May year is paid at the 'price to compare' (generation + transmission), which is lower than retail.
Rhode Island	Full retail net metering	Retail	monthly	Rhode Island Energy customers get net metering credits close to the retail rate (most delivery and supply charges, but not certain program charges). Production beyond annual use earns a lower 'excess' credit. Homeowners can alternatively sell all output under the Renewable Energy Growth (REG) fixed-price tariff.
South Carolina	Net billing (reduced export credit)	3¢	monthly	Since June 2021 new solar customers of Duke Energy and Dominion Energy SC are on 'Solar Choice' tariffs: you're billed on time-of-use rates, solar offsets usage within the same period, and monthly excess is credited at the low avoided-cost rate (~2-4 c/kWh). Duke has a $30 minimum bill.
South Dakota	No statewide net metering	3¢	varies	South Dakota has no net metering law. Utilities generally let you use your own solar and buy the excess at their avoided cost (a few cents per kWh).
Tennessee	No statewide net metering	2.7¢	instantaneous	Tennessee has no net metering law; almost all homes are served by TVA-supplied local power companies. Solar offsets your own usage, but exported power is typically bought at TVA's low wholesale avoided-cost rate (about 2.7 c/kWh in late 2026) or a local utility's own rate.
Texas	No statewide net metering	6¢	varies	Texas has no statewide net metering. In the deregulated ERCOT market you pick a retail electricity provider, and a few offer 'solar buyback' plans (typically 3-9 c/kWh, some match retail). Municipal utilities and co-ops set their own rules, e.g., Austin Energy's Value of Solar credit.
Utah	Net billing (reduced export credit)	4.3¢	instantaneous	Rocky Mountain Power customers who installed solar after 2017 are on net billing: solar used in your home saves full retail, but every kWh exported earns a lower export credit, currently 4.86 c/kWh in summer and 4.03 c/kWh the rest of the year.
Vermont	Full retail net metering	85%	monthly	Vermont net metering credits your solar at a statewide 'blended residential rate' (around 18-21 c/kWh), adjusted up or down by siting and REC adjustors that apply for the first 10 years. Credits roll over but expire after 12 months.
Virginia	Full retail net metering	Retail	annual	Virginia keeps 1:1 net metering with annual netting for Dominion and Appalachian Power. Solar offsets your usage at retail and credits roll over for 12 months; only surplus left at year end is paid at a low rate (Dominion ~5.8 c/kWh under the 2026 'NEM 2.0').
Washington	Full retail net metering	Retail	annual	Washington utilities must offer 1:1 net metering until June 30, 2029 or until they hit a 4% capacity threshold. Credits roll over monthly but are forfeited at the annual reset (usually April 30). Pacific Power has proposed switching new customers to net billing from Feb 2027.
West Virginia	Reduced export credit	9.34¢	monthly	West Virginia net metering still exists, but new customers of the major utilities now get reduced credits: about 9.3 c/kWh for Mon Power/Potomac Edison (since 2025) and about 12.4 c/kWh for Appalachian Power/Wheeling Power (Sept 2025 order). Earlier customers are grandfathered at retail.
Wisconsin	Varies by utility	21%	monthly	Wisconsin has no statewide net metering law; each utility's PSC-approved tariff applies. Most offer monthly netting for systems up to ~20 kW (We Energies up to 300 kW), but some pay only avoided cost for monthly excess.
Wyoming	Full retail net metering	Retail	monthly	Wyoming requires all utilities to offer net metering for systems up to 25 kW. Excess credits roll over at retail month to month, and anything left at the end of the year is paid at avoided cost.

What is net metering?

Net metering credits the solar power you send to the grid at the same retail rate you pay for power. Net billing and avoided-cost programs credit exports at a lower rate, often a third or less of retail.

Which states still have full retail net metering?

As of October 2026, about 21 states and D.C. credit exports at or near retail for most customers of their main utilities. Many have successor tariffs pending, so check your utility's current rules.

Does net metering affect whether solar is worth it?

Hugely. The same system can pay back years sooner with full retail credit than with a low export rate, and a battery or right-sizing matters much more where exports are cheap.