"Net Metering Is Guaranteed Forever"
Once you're approved, you're locked into net metering for life. The utility has to buy every extra kilowatt-hour at full retail price forever.
What's actually true
Net metering is set by state law and utility regulators, and it changes often. Grandfathering usually lasts a fixed number of years, and many states and utilities have already moved new customers to net billing, where exported power earns far less than retail.
Net metering is the policy that credits you for solar power you send to the grid. When it pays full retail value, it makes solar’s math much better. But it’s a regulatory decision, not a law of nature, and it has been changing across the country. A proposal that assumes today’s full-retail credit for all 25 years is making a promise no salesperson can keep.
Why salespeople say it
Full retail net metering lets a rep count every exported kilowatt-hour at your highest rate, which makes savings and payback look best. It also justifies a bigger system: if exports earn full price, more panels always look like more money.
What’s actually happening
As of October 2026:
- California moved new customers to the Net Billing Tariff (often called NEM 3.0) for applications from April 15, 2023. Exports are credited at much lower avoided-cost values. Customers with PTO between April 15, 2023 and December 31, 2027 have their export prices locked for 9 years, not 25.
- North Carolina (Duke Energy) closed full retail net metering to new customers on July 1, 2023.
- Idaho Power moved to real-time net billing with an avoided-cost export credit starting in 2024.
- Illinois utilities and a Washington utility moved to net billing in 2025, and several other states reviewed successor programs.
- In Q2 2026 alone, state policy trackers counted 53 net metering actions, plus 45 actions on fixed charges or minimum bills (NC Clean Energy Technology Center).
Grandfathering is common, but it usually lasts a set number of years and covers the system as approved. Adding panels later can trigger the newer rules. Check your state on our net metering page and state pages.
A worked example
Say your system exports 4,000 kWh a year.
| Export credit | Annual value of exports | Over 10 years |
|---|---|---|
| Full retail, about 18.3¢/kWh (U.S. average, EIA July 2026) | about $730 | about $7,300 |
| Net billing at 5¢/kWh (illustrative) | $200 | $2,000 |
The difference is about $530 a year. If a proposal assumes full retail for 25 years but your rules change after year 10, the later years of savings shrink. And if you’re already on net billing, the proposal should never have assumed full retail at all.
That’s why system size matters. A system sized to your daytime and annual usage relies less on export credits. See oversized system.
How it shows up in a proposal
- A single “savings” line that multiplies all production by your retail rate.
- No mention of the export rate, fixed monthly charges, or a minimum bill.
- “Guaranteed” or “locked in” language with no reference to a tariff or end date.
- In net billing states, a large battery pitched as the fix. Sometimes that’s right, sometimes oversold. See battery oversell.
Questions to ask
- “What net metering or net billing tariff would I be on, and what’s the export rate?”
- “How many years are those terms guaranteed for, and where is that written?”
- “What share of my savings comes from exports versus power I use directly?”
- “What happens to my savings if the export rate drops after the guarantee ends?”
- “Does adding panels or a battery later change my tariff?”
Run your own numbers
Read net metering explained and, for California, NEM 3.0 net billing. If your utility uses time-of-use rates, see time-of-use rates and solar. Then test different export values in our calculator and compare options tool. If a seller put “net metering forever” in writing or presented it as guaranteed, report it to your state attorney general or reportfraud.ftc.gov.
Related red flags
Solar Systems Sized Bigger Than You Need
Panels beyond what your home uses often earn far less than retail, especially under net billing, where exports may be credited at a few cents per kWh. Extra capacity raises the price faster than it raises savings.
"Your Electric Bill Will Be $0"
Most homes with solar still get a utility bill every month. Fixed customer charges, minimum bills, low export credits under net billing, and winter months with less sun mean a $0 bill is rare.
"Electric Rates Go Up 6% to 8% Every Year"
From 2005 to 2025, average U.S. residential electricity prices rose about 3.1% a year, or about 0.5% a year after inflation (EIA and BLS data). Some years and some states spike higher, but a 6% to 8% yearly assumption for 25 years inflates savings a lot.
Home Batteries Sold on Exaggerated Savings
At about $1,130 per kWh installed, a 13.5 kWh battery costs roughly $15,000. Bill savings depend on your rate plan and export rules, and in many places they are a few hundred dollars a year. Backup power has real value, but it isn't bill savings.