Net Metering Policies by State (2026)

Net metering determines what your utility pays for the solar electricity you send back to the grid — and it is the single biggest policy variable in solar payback. Policies range from full retail 1:1(every exported kWh credited at your bill rate) to avoided cost (wholesale, ~2–5¢/kWh).

Full Retail (1:1)

Exports credited at your full retail rate — best for solar ROI. Monthly or annual true-up.

Massachusetts Connecticut Maine New Hampshire Rhode Island Vermont New York New Jersey Pennsylvania Illinois Ohio Wisconsin Minnesota Iowa Missouri Kansas Nebraska North Dakota South Dakota Florida Georgia North Carolina Virginia Maryland Delaware District of Columbia West Virginia Oklahoma Arkansas Colorado New Mexico Montana Oregon Washington Alaska

Net Billing

Exports credited below retail (typically 40–75%). Self-consumption and batteries matter more.

Indiana Michigan South Carolina Arizona Nevada Utah California Hawaii

Avoided Cost

Exports paid at wholesale (~2–5¢/kWh). Maximize self-use; export income is minimal.

Alabama Kentucky Tennessee Idaho

Mixed / Utility-Dependent

Varies by utility or retail choice market — check your provider.

Mississippi Texas Louisiana Wyoming

Why Net Metering Matters in 2026

After the federal ITC expired, net metering became the main lever on solar economics. In a full-retail state like New Jersey, every exported kWh is worth your full ~23¢ rate. In California's NEM 3.0, exports pay ~5¢ — so a battery that lets you store instead of export is worth ~6× more there.

Use the battery payback calculator to see whether storage makes sense in your state, or the state comparison tool to compare export economics side by side.

Classification per DSIRE / state PUC as of 2026. Several states (e.g., Texas) have no statewide net metering statute — policy is set utility by utility. Always confirm with your provider.