Key takeaways
- With the federal tax credit expired, export compensation is now the biggest lever in residential solar economics.
- Roughly half of U.S. states still credit exports at or near full retail; the rest pay avoided-cost rates (often $0.03–$0.08/kWh), use tiered tariffs, or leave it to utility discretion.
- California (NEM 3.0), Arizona, Hawaii, Indiana, Kentucky, Mississippi, and Utah are firmly avoided-cost — batteries and self-consumption carry the economics there.
- Texas has no state mandate at all — your buyback depends on which retail electricity provider you pick.
- Policies shift: always confirm the current tariff with your utility before signing an installation contract.
The quick answer
Net metering means every kWh you export offsets a kWh you imported at the retail rate — the best deal. Net billing means exports earn a lower, wholesale-adjacent “avoided cost” rate — typically $0.03–$0.08/kWh versus retail rates of $0.12–$0.40. Which regime your state uses can swing payback by 5+ years on the same system. Find your state in the table, then verify with your utility — several states are mid-transition.
Net metering by state (August 2026)
Compiled from state PUC rules and utility tariffs as of August 2026. Categories are simplified — many utilities apply caps, fees, or tiered rates within a category. Always confirm current terms with your utility before signing.
Full retail net metering
| State | Notes |
|---|---|
| Alaska | Regulatory-commission-mandated for qualifying utilities; capped |
| Colorado | Xcel + Black Hills follow statutory full retail |
| Delaware | Delmarva full retail |
| Iowa | MidAmerican + Alliant; systems to 500 kW |
| Illinois | Full retail + RECs via Adjustable Block program |
| Louisiana | Entergy + Cleco; under PUC review |
| Maine | LD 91 net billing at full retail; generous size cap |
| Maryland | Full retail + community solar |
| Minnesota | Full retail with Value-of-Solar option at Xcel |
| Missouri | Ameren + Spire at full retail |
| Montana | NorthWestern Energy full retail |
| Nebraska | Public power districts (LES, OPPD); terms vary |
| New Jersey | Full retail + SREC-II market |
| New Mexico | PNM + El Paso Electric + Xcel full retail |
| North Dakota | Xcel + MDU full retail |
| Ohio | All major IOUs full retail |
| Oklahoma | OG&E + PSO full retail |
| Oregon | Portland General + PacifiCorp full retail |
| Pennsylvania | Full retail statewide |
| Rhode Island | Full retail + REG program |
| Vermont | Full retail + group net metering with adders |
| Virginia | Dominion + APCo full retail |
| Washington | PSE + Avista + PacifiCorp full retail |
| West Virginia | Appalachian Power + Mon Power full retail |
| Wyoming | Rocky Mountain Power + Black Hills full retail |
Modified / near-retail (tariffs, tiers, or partial credit)
| State | Notes |
|---|---|
| Arkansas | Retail bill credit with aggregate caps |
| Connecticut | Tariff netting ≈80–90% of retail; buy-all/sell-all options |
| Florida | Near-retail via utility tariffs (FPL, Duke, TECO) with added fixed charges; active PSC review |
| Idaho | Retail-style with fees at Idaho Power + Rocky Mountain Power |
| Kansas | Retail plus demand charges for solar customers |
| Massachusetts | SMART block rates + RECs (not classic NEM) |
| Michigan | Power-supply-rate credit only (~$0.04–$0.06/kWh) |
| Nevada | AB 405 tiered export rates ≈75–95% of retail, locked 20 years |
| New Hampshire | Self-consumption at retail + avoided-cost exports (~60–70% blended) |
| New York | Residential largely Phase-1 net metering; VDER value stack for larger/commercial |
| North Carolina | Duke hybrid tariff near retail + minimum bill; active review |
| South Carolina | Duke + Dominion tiered near-retail (Act 62 transitions) |
| Tennessee | TVA Green Connect ≈$0.03/kWh + REC |
| Utah | RMP export credit ~$0.05–$0.06/kWh (transitioned from retail) |
| Wisconsin | Parallel generation service ~$0.04–$0.05/kWh |
Avoided-cost net billing (exports paid wholesale-adjacent)
| State | Notes |
|---|---|
| Alabama | No state mandate; Alabama Power limited net billing ≈$0.04/kWh |
| Arizona | APS/TEP/UNS export rate ≈$0.07/kWh (resets annually); SRP demand-charge tariff — batteries strongly advised |
| California | NEM 3.0 since April 2023: exports ≈$0.05–$0.08 vs retail $0.36+; self-consumption is king |
| Georgia | Georgia Power monthly netting at avoided cost ≈$0.04/kWh |
| Hawaii | Customer Grid-Supply ≈$0.15–$0.18/kWh (still below very high retail) |
| Indiana | Excess generation at avoided cost ≈$0.03/kWh |
| Kentucky | HB 227 phased to ≈$0.03–$0.04/kWh |
| Mississippi | PSC net billing ≈$0.025/kWh |
No statewide mandate (utility/retailer discretion)
| State | Notes |
|---|---|
| South Dakota | Utility discretion; typically avoided cost |
| Texas | Deregulated retail market — your REP’s buyback plan sets the rate (see below) |
Texas deep dive: buyback in a deregulated market
Texas is unique: most of the state runs on retail competition. Your wires company (Oncor, CenterPoint, AEP Texas, TNMP) delivers power, but the Retail Electricity Provider (REP) you choose sets your solar buyback terms — and they differ dramatically:
- Some plans credit exports at your energy rate (1:1-style) — the closest thing to classic net metering in Texas. These plans usually have specific enrollment rules and sometimes annual true-up limits.
- Some pay a fixed buyback rate (often well below retail) for every exported kWh.
- Some pay wholesale-indexed prices — lucrative at summer peaks, near zero on mild spring days.
- Time-of-use variants pay different buyback by hour — pairs well with battery export during evening peak.
Practical playbook:
- Before installing, pull your last 12 months of usage and estimate your export surplus with our output calculator.
- Compare at least three plans’ buyback terms side-by-side (the state’s Power to Choose site lists them) — a 1:1 plan versus avoided-cost can change annual value by hundreds of dollars on the same array.
- Check contract length and whether buyback terms are fixed or can change at renewal — solar homeowners benefit from longer fixed terms.
- High export fraction? Consider a battery and a wholesale-indexed or TOU plan to sell into evening peaks.
- Re-shop at every contract renewal — buyback terms are a competitive market, not a regulated constant.
Why this table now matters more than ever
The 30% federal credit offset a lot of policy pain: even a mediocre export rate still produced acceptable payback because the system cost a third less. In 2026 that cushion is gone. Two systems with identical hardware can differ by decades of lifetime value:
- A 10 kW system in a full-retail state saving at $0.16/kWh blends toward ~10–12-year payback.
- The same system exporting at $0.04/kWh with low self-consumption may never pay back without a battery strategy.
Before you sign anything: (1) find your state above, (2) read your utility’s actual tariff sheet, (3) model self-consumption honestly in the payback calculator with the credit set to 0, and (4) if you’re in an avoided-cost state, price the system with storage sized to your evening load.
FAQ
What is the difference between net metering and net billing?
Net metering credits each exported kWh at your full retail rate, offsetting kWh you imported. Net billing pays a separate, lower rate (usually avoided cost) for exports — often $0.03–$0.08/kWh. The gap compounds into thousands of dollars over a system’s life.
Which states still have full retail net metering in 2026?
Roughly half — including New Jersey, Pennsylvania, Ohio, Virginia, Maryland, Massachusetts (via SMART), Minnesota, Missouri, and most of the Mountain West and Pacific Northwest. Several (Nevada, New York, North Carolina, South Carolina) run tiered or hybrid tariffs close to retail. The table above lists all of them.
Does net metering still matter now that the federal tax credit expired?
More than ever. With no 30% federal check, your export compensation rate is usually the single biggest variable in payback. Full-retail states keep solar straightforwardly profitable at decent electricity rates; avoided-cost states push the economics toward batteries and self-consumption.
Can my state change its net metering rules after I install?
Usually not retroactively for existing systems — most transitions (like California’s NEM 3.0) grandfather prior customers for a set period, often 20 years from interconnection. But new-policy windows and true-up details can shift, so read the grandfathering clause in your interconnection agreement before signing.
Is a battery worth it in an avoided-cost state?
Often yes: a battery shifts exports from $0.04/kWh daytime sales to displacing $0.15–$0.40/kWh evening imports, and can capture time-of-use peaks where offered. Size it to your real evening load — oversizing storage in a low-export household wastes money. See our battery cost guide for current pricing.
Next logical reads
Federal solar tax credit 2026: what ended Solar payback calculator How much do solar panels cost? Solar battery costs 2026