Net metering explained
Solar panels produce at midday; homes consume most in the evening. Net metering is the accounting that bridges the gap.
The simple version
Under 1-to-1 net metering, each kWh you export earns a kWh of credit. Produce 30 kWh by day, use 30 kWh by night, and your bill nets near zero (you still pay fixed connection fees).
Why it matters more in 2026
With the federal residential credit gone, net metering policy is now the single biggest lever on payback. California's NEM 3.0 (2023) slashed export credit values and stretched paybacks there; other states still offer full retail credit. Policies change — check your utility's current tariff, not a 2022 article.
Without net metering
You only offset electricity consumed while producing — roughly 50% of a typical home's usage without a battery. That roughly halves year-1 savings and can double payback. This is the scenario the payback calculator's "self-consumption only" mode models.
Batteries and net metering
A battery stores midday surplus for evening use, effectively creating your own net metering. It works — at $8,000–$15,000+ installed, which belongs in the payback math, not beside it.