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Net Metering Savings Calculator (U.S.)

Estimate annual bill savings under U.S. net metering. Free net metering savings calculator covering NEM 1.0 retail credit and NEM 3.0 avoided-cost.

Methodology reviewed August 11, 2026 by the Solar Calculator HQ editorial team. This is an editorial check, not professional engineering or tax certification. Review our formula, source and limitation standards.

Solar Net Metering Savings Calculator

Bill without solar
$1,902
Bill with solar
$376
Annual savings
$1,526
Bill reduction
80.2%
How the math works
Annual production: 9,247 kWh
Annual imports: 7,564 kWh · Annual exports: 6,010 kWh
Bill without solar: $1,902 → Bill with solar: $376

How the calculator works

The Net Metering Savings Calculator estimates your annual electricity bill before and after solar under your utility’s specific net metering or net billing structure. Unlike a simple “production × retail rate” calculation, it separately tracks the two value streams that determine real savings:

  • Self-consumption — solar kWh used by your home in real time. Always worth your full retail rate, regardless of net metering regime.
  • Net credit value — solar kWh exported to the grid. Worth retail rate under NEM 1.0/2.0, but only avoided cost under NEM 3.0 or Hawaii CGS+.

Plug in seven numbers and the calculator returns annual production, annual imports, annual exports, your gross bill (without solar), your net bill (with solar), annual savings in dollars, and the percentage bill reduction.

  1. System size (kW) — DC nameplate. National average residential install was 7.5 kW DC per EnergySage H2 2025 marketplace data. Use the how many solar panels do I need calculator to size properly.
  2. Peak sun hours/day — your NSRDB average. Phoenix 6.5, Los Angeles 5.5, Dallas 5.0, Atlanta 4.7, Chicago 4.0, Boston 4.0, Seattle 3.5. Pull from PVWatts.
  3. Annual usage (kWh) — your last 12 months from utility bills. EIA reports the average U.S. residential customer used 10,791 kWh in 2024.
  4. Retail rate ($/kWh) — your blended rate. EIA Form 826 February 2026 national average is $0.165/kWh. Hawaii Electric residential blended $0.42, PG&E E-TOU-C $0.42, AEP Texas $0.135.
  5. Net-metering credit ($/kWh) — set to retail rate for NEM 1.0/2.0 states; set to $0.07 for NEM 3.0 California; set to your utility’s avoided-cost rate for Arizona, Nevada, or Hawaii.
  6. Self-consumption (%) — 25–40% without battery, 60–85% with battery.
  7. Minimum monthly bill — non-bypassable customer/grid-access charge, typically $96–$180 annually.

How the math works

annual_kWh_produced  = system_kW × peak_sun_hours × 365 × 0.77
self_consumed        = min(annual_use, annual_prod × self_pct/100)
imports_kWh          = max(0, annual_use - self_consumed)
exports_kWh          = max(0, annual_prod - self_consumed)
gross_bill           = annual_use × retail_rate + min_bill
import_cost          = imports_kWh × retail_rate
credit_value         = exports_kWh × credit_rate
net_bill             = max(min_bill, import_cost - credit_value + min_bill)
annual_savings       = gross_bill - net_bill
savings_pct          = annual_savings / gross_bill × 100

The 0.77 multiplier is the IEC 61724 system performance ratio for residential PV — covering inverter losses (3–4%), wire losses (1–2%), soiling (2–5%), high-temperature derating (5–8%), and module mismatch (1–2%). The minimum-bill floor ensures the calculator never returns savings greater than the gross bill, which would imply the utility paying you net cash. That only happens with annual true-up payouts at avoided cost, which is a separate line item, not a negative bill.

Worked example: 7 kW system in Dallas under Texas 1:1 net metering (Green Mountain Renewable Rewards)

  • System: 7 kW DC, 5.0 PSH (Dallas NSRDB), retail rate $0.135 (TXU 12-month)
  • Annual production: 7 × 5.0 × 365 × 0.77 = 9,840 kWh/yr
  • Annual usage: 13,000 kWh (typical Texas household with AC load)
  • Self-consumption 35% (no battery) → 3,444 kWh self-consumed × $0.135 = $465 saved direct
  • Imports: 13,000 − 3,444 = 9,556 kWh × $0.135 = $1,290 import cost
  • Exports: 9,840 − 3,444 = 6,396 kWh × $0.135 = $863 credit value
  • Net bill = max($120, $1,290 − $863 + $120) = $547/yr (vs $1,875 gross)
  • Annual savings: $1,328 — 71% bill reduction

Worked example: same system in Sacramento under PG&E NEM 3.0

  • System: 7 kW DC, 5.4 PSH (Sacramento), retail rate $0.30 (PG&E E-TOU-C blended)
  • Annual production: 7 × 5.4 × 365 × 0.77 = 10,632 kWh/yr
  • Annual usage: 9,000 kWh, NEM 3.0 export rate $0.07 (CPUC ACC average)
  • Self-consumption 35% no battery → 3,721 kWh × $0.30 = $1,116
  • Imports: 9,000 − 3,721 = 5,279 × $0.30 = $1,584 import cost
  • Exports: 10,632 − 3,721 = 6,911 × $0.07 = $484 credit value
  • Net bill = max($120, $1,584 − $484 + $120) = $1,220/yr (vs $2,820 gross)
  • Annual savings: $1,600 — 57% bill reduction

Now add a 13.5 kWh Tesla Powerwall (self-consumption climbs to 85%):

  • Self-consumed 9,000 × 0.85 capped at use = 7,650 kWh × $0.30 = $2,295
  • Imports: 9,000 − 7,650 = 1,350 × $0.30 = $405 import cost
  • Exports: 10,632 − 7,650 = 2,982 × $0.07 = $209 credit value
  • Net bill = max($120, $405 − $209 + $120) = $316/yr
  • Annual savings: $2,504 — 89% bill reduction

Storage value under California net billing comes from shifting energy from a lower export value to a higher avoided import rate. For a new 2026 homeowner expenditure, calculate payback from the full installed battery price after only verified state or utility programs; Section 25D is unavailable.

State-by-state net metering snapshot (Q1 2026)

StateStructureCredit typeAnnual true-up
CaliforniaNEM 3.0 / NBTAvoided cost ACC, $0.05–$0.08 avgAnnual, paid at avoided cost
TexasUtility bilateralRetail (Green Mountain), $0.07 (REP avg)Monthly or annual depending on REP
FloridaNEM 1.0Retail creditAnnual, NEG paid at avoided cost
New YorkVDER Value Stack$0.08–$0.18 location-dependentMonthly true-up + adders
ArizonaEPS / RCP$0.073 APS, $0.103 TEPMonthly
NevadaNMR Tier 375% of retailMonthly
MassachusettsSMART NEMRetail + adderMonthly true-up
IllinoisNEM 1.0 + RECRetail + $50–$70/MWh RECAnnual, NEG paid at PJM
HawaiiCSS / CGS+$0.15/kWh CGS+ FITMonthly settlement
North CarolinaNEM + grid chargeRetail offset + monthly demand chargeAnnual
New JerseyTREC + NEMRetail + TREC $90/MWhAnnual
ConnecticutRRES Buy-All$0.32/kWh FIT 20-yrMonthly settlement

Source: DSIRE 2026, NREL State Solar Policy database, individual utility tariff sheets.

NEM 1.0, NEM 2.0, NEM 3.0 — what to enter as credit rate

NEM 1.0 — every exported kWh credited at full retail rate, NEG rolled forward indefinitely or trued up at retail. Most U.S. states pre-2018. Enter retail rate as credit rate.

NEM 2.0 — retail credit minus non-bypassable charges ($0.02–$0.03/kWh subtracted on import side); mandatory TOU rate. California 2016–2023. Enter retail rate minus $0.025 as credit rate.

NEM 3.0 / NBT — exports priced at CPUC Avoided Cost Calculator. Annual average $0.05–$0.08. Peak summer evening 5–9pm bursts to $0.50+ but represent <5% of generation. California from April 2023; the model is spreading to Arizona, Nevada, and proposed in Florida (vetoed 2022). Enter $0.07 as annual blended.

Buy-all/sell-all (Hawaii CGS+) — sell every kWh produced at FIT, buy every kWh consumed at retail. Set self-consumption to 0%, credit rate to the FIT rate ($0.15 Hawaii CGS+).

Section 25D termination and the payback math

Section 25D is unavailable for homeowner expenditures after 31 December 2025. On a $22,000 system, start the 2026 payback calculation at $22,000 before current state or utility programs, not $15,400. The same termination rule applies to new standalone-storage expenditures.

Model the full cost side in our cost of solar panels calculator. The solar panel tax credit calculator explains the Section 25D termination and can document a qualifying credit tied to an expenditure made before 2026; its 2026 homeowner default is 0%.

Minimum bills and demand charges — the small print

Most U.S. utilities bill a customer/grid-access charge of $8–$15/month even when your net energy is zero or negative. This is the minimum-bill floor in the calculator. North Carolina Duke residential solar customers also face a $20–$30 monthly minimum demand charge under the solar rider — your peak 15-minute import sets a minimum cost regardless of net energy. Hawaii CSS includes a $25/month fixed charge. Arizona APS residential solar customers pay a $25/month grid-access charge plus monthly demand.

Always pull your utility’s interconnection tariff before sizing. The non-bypassable charges can turn a paper $0 net energy bill into $200–$400/yr in fixed costs, which the calculator captures in the minimum-bill input.

Sources

  • Database of State Incentives for Renewables & Efficiency (DSIRE), N.C. Clean Energy Technology Center, 2026 net metering policy table.
  • U.S. Energy Information Administration, Form 826 February 2026 retail rate release.
  • California Public Utilities Commission, NEM 3.0 / Net Billing Tariff Decision D.22-12-056 and ACC lookup tables.
  • National Renewable Energy Laboratory, PVWatts Calculator and State Solar Policy database.
  • EnergySage Solar Marketplace Intel Report H2 2025.
  • IRS — Residential Clean Energy Credit — Section 25D termination and qualifying earlier expenditures.

Frequently asked questions

What is net metering and how does it differ from a feed-in tariff?
Net metering credits the kilowatt-hours your solar exports against the kilowatt-hours your home imports on the same utility meter. In a 1:1 net metering state, 1 exported kWh cancels 1 imported kWh — your bill is the net of the two. A feed-in tariff is structurally different: you sell every exported kWh at a fixed cents-per-kWh price (often lower than retail) and buy every imported kWh at the full retail rate. Under U.S. net metering 1.0/2.0 (still active in ~38 states per DSIRE), 1 kWh exported is worth your full retail rate. Under California NEM 3.0 (April 2023 onwards), exports are priced at the CPUC avoided-cost lookup table — annual blended ~$0.05–$0.08/kWh — which is technically a Net Billing Tariff, not net metering.
How much will net metering save me per year?
A typical 7 kW residential PV system in a 1:1 net metering state generating 11,000 kWh against 10,800 kWh household usage will fully offset the bill, saving $1,780 per year at the EIA February 2026 national average $0.165/kWh. The exact savings depend on three numbers: your retail rate, your annual production, and your minimum/customer charge (most utilities still bill $8–$15/month even at net-zero). Under NEM 3.0 California, the same system saves only $1,000–$1,300 unless you add battery storage, because exports earn $0.07 average instead of the $0.30+ retail PG&E rate.
Which states still have full 1:1 net metering in 2026?
DSIRE's 2026 tracker lists about 38 states with retail-rate 1:1 net metering for residential systems under 25 kW — including Florida, New York (with VDER value stack for new), Massachusetts (SMART), Illinois, New Jersey, Texas (utility-dependent), Connecticut, and most of the Midwest. California, Arizona, Nevada, Hawaii, and Idaho have moved to partial credits, avoided cost, or buy-all/sell-all structures. North Carolina retains a 1:1 monthly netting but adds a minimum demand charge. Always check your utility's interconnection agreement — multi-utility states often have different rules per IOU.
Does net metering reset every month or every year?
Most utilities run a monthly true-up of imports and exports, with any net excess generation (NEG) rolled into a credit balance. At the annual true-up (typically March or April), unused NEG is either paid out at avoided cost (California, Hawaii), forfeited (some Midwest utilities), or rolled forward indefinitely (Florida, Illinois). Sizing your system to roughly match your annual usage — not overshoot it — is the standard recommendation; oversizing past 110% of usage rarely pays back the extra panels.
Will adding a battery improve my net metering savings?
Under 1:1 net metering, a battery adds almost no bill savings — every exported kWh is already worth retail rate. The battery only pays back via backup-power value or future tariff-change protection. Under NEM 3.0 California, partial-credit SEG schemes, post-saldering Netherlands, or any tariff where the credit rate is well below retail, a battery is critical. The calculator's 'self-consumption %' input captures this: pushing it from 35% (no battery) to 85% (with 10 kWh battery) can double your savings under NEM 3.0, because every shifted kWh moves from $0.07 export to $0.30 self-consumption.

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