Path-Q Solar
How does net metering differ from being paid separately for exported solar power?
Answer
Net metering generally offsets imported electricity with exported solar energy under a billing-credit mechanism, while separate export payment compensates exported electricity independently from electricity purchased from the grid. The financial result depends on the applicable rates, billing periods, credit expiration, and fixed charges.
Key points
- Net metering may value exports at or near the retail energy rate, but the exact structure varies.
- Separate export payment may use a different rate from the rate charged for imports.
- Neither structure necessarily eliminates fixed charges or other non-energy bill components.
- Some systems combine export credits with time-based or tiered rates.
What it depends on
- Utility tariff and billing rules
- Export-credit rate and treatment of unused credits
- Timing of solar production and household consumption
- Fixed charges, demand charges, and other bill components
Risks and trade-offs
- A system sized under one compensation method may be uneconomic under another.
- Unused credits may expire, be carried forward, or be settled under different rules.
- Marketing language such as 'net metering' may not describe the full bill calculation.
Information you may need
- The utility's current tariff and export-credit terms
- How credits are calculated, carried forward, or settled
- Your current bill structure and annual electricity use
- Any limits on system size or export capacity
Your next step
What to do next
Obtain the applicable utility tariff and compare the value of imported and exported electricity using your own usage pattern.
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