Do Energy Companies Pay for Solar Energy? Net Metering Explained
Do energy companies pay you for solar? How net metering, net billing and feed-in tariffs work, how much utilities pay for excess solar energy, bill credits vs…
In this article
Often, yes, but usually as bill credits rather than cash. Under net metering, your utility credits you for the excess solar electricity you send to the grid, often at or near the retail rate. Many areas have moved to net billing, where exports are credited at a lower rate. A few programs pay cash through feed-in tariffs or annual payouts.
Rules depend on your state and utility, and they change. Always check your utility's current program.
How it works
- Your panels produce electricity
- Your home uses what it needs
- Extra power flows to the grid through a two-way meter
- The utility credits you for that power
- At night or on cloudy days, you draw from the grid and use your credits
Types of programs
| Program | How you're paid |
|---|---|
| Net metering | Credits at or near the retail rate |
| Net billing | Credits at a lower export rate |
| Feed-in tariff | Fixed rate per kWh, sometimes cash |
| Annual true-up | Leftover credits paid out or reset yearly |
How much do energy companies pay for solar?
It depends on the program: from full retail value under classic net metering to a fraction of it under net billing. Utilities often pay leftover annual credits at a lower "avoided cost" rate.
Do batteries help?
Under net billing, storing your solar in a battery and using it at night can be worth more than exporting it at a low rate.
Why it matters for solar companies
Export rates heavily affect customer savings and payback, so solar companies must explain them clearly. More: How do solar companies work? and Is the solar energy business profitable?.
Frequently asked questions
Do energy companies pay for solar?
Usually through bill credits under net metering or net billing; some pay cash.
How much do energy companies pay for solar energy?
From retail rate down to a much lower export rate, depending on the program.
What is net metering?
A billing system that credits you for excess solar power sent to the grid.
Can I get a check from my utility for solar?
Sometimes for leftover annual credits, usually at a lower rate.
Do I need batteries to benefit from solar?
No, but batteries can increase savings where export rates are low.
Want a solar company website that generates qualified leads built for your business?
I design and build fast, modern websites that turn visitors into customers, with booking, WhatsApp and automations built in. Tell me about your business.
Start a conversationWritten by Sachin Rawat
AI & automation engineer · websites, apps and motion design
I build AI agents, automations, websites, apps and motion design for businesses. These guides answer the questions people actually search, written from hands-on experience building them.
Work with meMore stories