Net Metering vs Net Billing: What Changed in 2026?

The letter came from my utility. Not a bill. A notice. “Changes to your solar compensation.” I read it three times. My heart sank. The monopoly was ending net metering for new customers. Existing customers like me were grandfathered for ten years. But after that, I would be on net billing too. The Solar ROI Calculator can help you model the impact of net billing on your payback.

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This is the difference. Net metering gives you a 1:1 credit for every kilowatt-hour your solar panels export to the grid. If you send 10 kWh, you get credit for 10 kWh. You can use that credit later when your panels are not generating. Net billing gives you a wholesale credit. Usually 3¢ to 5¢ per kWh. But you still buy electricity at the retail rate of 15¢ to 20¢. The delta is huge. The Electric Bill Estimator can help you see your current solar savings.

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Electric Bill Estimator

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The math on net metering. My solar system generates 9,150 kWh per year. I use 9,000 kWh. I export 150 kWh. Under net metering, I get a credit for 150 kWh at 20¢/kWh, which is $30. I also avoid buying 9,000 kWh at 20¢/kWh, which is $1,800. My annual savings are $1,830. My electric bill is $200 a year. Under net billing, the same system would generate 9,150 kWh. I would use 6,000 kWh directly. The other 3,150 kWh would export at 3¢/kWh, earning me $94.50. I would still need to buy 3,000 kWh at 20¢/kWh, costing me $600. My annual bill would be $600 - $94.50 = $505.50. My savings drop from $1,830 to $1,324. That is a 28% reduction. The Time-of-Use Rate Comparator can help you see if shifting your usage would help under net billing.

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Time-of-Use Rate Comparator

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Net billing changes the solar math. My payback period under net metering was 5.3 years. Under net billing, it jumps to 8.7 years. My internal rate of return drops from 14.2% to 9.1%. Still positive, but less attractive. The change is happening across the country. California led the way with NEM 3.0 in 2023. Arizona, Nevada, and now Texas are following. The monopoly argues that net metering shifts grid costs to non-solar customers. That equals partly true. But the monopoly also wants to protect its revenue. The Appliance Cost Calculator can help you shift your usage to daytime hours. Look at how to adapt to net billing. To startadd battery storage. A battery lets you store your excess solar and use it at night. Instead of exporting at 3¢/kWh, you save 20¢/kWh. The math works. I ran the numbers. A 10 kWh battery costs $8,000 installed. Under net billing, my annual savings with battery would be $1,830 again. Without battery, $1,324. The battery adds $506 in annual savings. Payback 15.8 years. Not great, but battery prices are falling. By 2030, payback might be 10 years. Next upshift your usage to daytime. Run your dishwasher, laundry, and pool pump when the sun is shining. Charge your EV during the day. Set your AC to pre-cool at 2 PM. I already do these things. They maximize self-consumption. They reduce exports. The Smart Thermostat Savings Estimator can help you schedule your AC around solar production. Thenoversize your solar system. Under net billing, you need to cover more of your own usage. That means a larger system. My current system is 5.2 kW. Under net billing, I would need 6.5 kW to offset the same bill. The extra 1.3 kW costs $3,000. My payback would be longer, but my bill would be near zero. Alsoconsider a heat pump water heater. It uses electricity during the day when your solar is generating. It stores hot water for evening use. That comes to a form of thermal battery. My friend installed one. He paid $2,500 after the 25C credit. He shifts 4 kWh per day from off-peak to solar. That saves him $0.80 a day, $292 a year. Payback 8.6 years. The Home Energy Score Calculator can help you see if your home is ready for solar under net billing. Check out your action plan for net billing. First offcheck your utility’s policy. Are you on net metering or net billing? If you are grandfathered, good. If not, plan accordingly. Thenif you are buying solar, oversize your system. Aim for 110% of your annual usage. That gives you room for degradation and future EV. Afterwardsadd battery if you can afford it. The payback is long, but the independence is worth it. When the grid goes down, you still have power. Additionallyshift your usage to daytime. Use timers, smart plugs, and scheduled charging. Every kilowatt-hour you use directly is worth 20¢. Every kilowatt-hour you export is worth 3¢. The monopoly wants you to stay on net metering. They want to end it. They want you to pay more. Do not let them. Watt and Volt do not care about net metering. They care about the sunny spot on the floor where the battery would go. My solar system is still grandfathered for nine more years. I will add a battery before then. I will be ready. 我们正在为 electricbillcheck.com 批量输出文章，目前已完成 16 篇。用户要求继续，每篇按照规范2500-3000词，结合站长人设（Ryan Mitchell，Austin，TX）和当地热点/热词。第17篇是 "What Is Peak Shaving and How Batteries Save You Money"。需要确保口语化、无小标题、情绪描写、工具卡片2-3个、间隔≥300词，融入本地元素（Austin, ERCOT, 2026 trends）。开始撰写。

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