Net metering is the regulatory mechanism that lets your solar system "spin the meter backward" — exporting excess generation to the grid and getting credit for it. It's also the single most-changed solar policy in the last five years. Here's the 2026 landscape.
The four flavors of net metering you'll encounter
1. Full retail net metering ("the good stuff")
Every kWh you export is credited at exactly the same rate you'd pay to import. This is the simplest, most generous arrangement and what most people picture when they say "net metering."
States still doing this in 2026: Arkansas, Colorado, Illinois, Iowa, Maine, Maryland, Massachusetts, Minnesota, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, Ohio, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming, and DC.
2. Successor tariff (the "almost as good" replacement)
States like California (NEM 3.0), Arizona, Connecticut, Indiana, Kentucky, Louisiana, Michigan, Mississippi, Nevada, North Carolina, South Carolina, and Utah have replaced full retail with a "successor tariff" — exports get credit at less than retail. The exact rate varies wildly: Connecticut credits at about 90% of retail, while California's NEM 3.0 credits at the avoided cost (often 15–25% of retail).
What this means: Solar still pays back, but adding a battery to self-consume your daytime production usually improves payback significantly.
3. Partial / capped net metering
States like Alaska, Florida, Georgia, Idaho, Kansas, and Oklahoma have net metering, but with caps — either on system size, on aggregate program enrollment, or on which utilities are required to participate. Check your specific utility before signing any contract.
4. None or unfavorable
Alabama, South Dakota, Tennessee, and Texas have no statewide net metering mandate. Some utilities offer voluntary buyback programs (often at avoided-cost rates of 4–6¢/kWh), but you can't count on retail-rate credit.
The "successor tariff" trap
Here's the thing utilities don't put in their press releases: most successor tariffs have a 20-year lock-in clause for systems interconnected before a certain date. If your state is debating a transition, getting solar installed before the cutoff can lock in the better terms for two decades. This is one of the few cases where there's genuine timing pressure on a solar decision.
How to verify your specific situation in 5 minutes
- Look up your utility on DSIRE (search by ZIP code).
- Find the row labeled "Net Metering" or "Distributed Generation Tariff."
- Note the export credit rate (usually expressed as a percentage of retail or a $/kWh figure).
- Note the system size cap (usually 10 kW, 25 kW, or 100 kW for residential).
- Check for any "true-up" provisions — some utilities zero out unused credits annually instead of letting them roll forward.
What to do if your state has a weak policy
- Add a battery to self-consume daytime production instead of exporting at low rates.
- Right-size for self-consumption rather than 100% offset (smaller system = better economics).
- Consider TOU rate plans if your utility offers them — some plans are more solar-friendly than the standard residential rate.
Want to see how your state's policy plays out in your payback math? Run the numbers here.