Net Metering Calculator
Determine solar grid export credits, compare 1:1 retail NEM 2.0 against avoided-cost NEM 3.0 net billing, and calculate annual true-up electricity bills.
Tariff Policy Comparison & True-Up Bill Breakdown
Net Metering Calculator - NEM 2.0 vs NEM 3.0 Export Credits: Free Net Metering Calculator tool: calculate solar Net Energy Metering (NEM 1.0/2.0/3.0) financial credits, monthly grid export compensation.
How to Use the Net Metering Calculator
Enter Annual Generation & Usage
Input expected yearly solar production (kWh) and your home’s annual electricity consumption (kWh).
Select Self-Consumption Percentage
Choose 40% for solar-only homes, 60% with EV daytime charging, or 85% for solar + battery storage.
Input Retail Import & Export Rates
Enter your utility retail electricity rate (e.g. $0.32/kWh) and the NEM 3.0 export credit rate (typically $0.05 - $0.08/kWh).
Compare NEM 2 vs NEM 3 True-Up Bills
Review the annual true-up difference and calculate the exact financial value of adding a battery.
Comprehensive Guide: Net Metering Calculator
Net Energy Metering (NEM) is the regulatory utility billing mechanism that governs how grid-tied solar customers are compensated for the surplus electricity their photovoltaic systems feed onto the electrical grid. For over two decades, original Net Metering (NEM 1.0 and NEM 2.0) operated on a simple 1:1 retail credit principle: every kilowatt-hour exported during midday was credited at the full retail rate, allowing the grid to serve as a free, 100% efficient virtual battery.
In recent years, regulatory commissions (most notably California with NEM 3.0, formally known as the Solar Billing Plan or Net Billing Tariff) have radically restructured compensation rules. Under NEM 3.0, the 1:1 retail credit has been abolished and replaced with an "Avoided Cost Calculator" (ACC) wholesale credit rate. While homeowners must still purchase electricity from the grid at full retail prices (often $0.30 to $0.45/kWh), exported solar electricity is credited at an average of only $0.05 to $0.08/kWh—a 75% to 85% drop in export value.
This regulatory shift fundamentally alters solar system engineering. Under NEM 2.0, systems were sized to produce 100% to 110% of annual electricity needs with little regard to when electricity was consumed. Under NEM 3.0, exporting solar to the grid is heavily penalized. The economic imperative is now maximizing "self-consumption"—using solar electricity on-site behind the meter before it ever touches the grid.
Home battery storage has transformed from an optional blackout-resilience luxury into an economic necessity under NEM 3.0. By storing excess midday solar power in a lithium battery instead of exporting it for $0.07/kWh, and then discharging that stored power in the evening to avoid purchasing $0.35/kWh grid electricity, homeowners capture a valuable $0.28/kWh arbitrage spread. Sizing solar arrays with paired battery storage recovers over 85% of original NEM 2.0 financial savings.
Key Features & Capabilities
NEM 2.0 vs NEM 3.0 Side-by-Side Audit
Directly compares grandfathered 1:1 retail net metering against modern avoided-cost tariffs.
Battery Arbitrage Value Calculator
Quantifies the exact dollar savings of storing solar energy on-site to avoid peak nighttime grid imports.
Self-Consumption Scaling Engine
Models 40% standalone solar, 60% with EV charging, and 85% battery microgrid self-consumption.
Annual True-Up Forecasting
Calculates the year-end reconciliation bill owed to the utility company across both rate structures.
Time-of-Use Rate Arbitrage
Reveals how export devaluation affects payback timelines and investment returns.
Instant Client-Side Privacy
Calculates net metering financials locally without submitting utility accounts or personal data.
Frequently Asked Questions
Under NEM 2.0, solar customers received a 1:1 retail credit for excess electricity exported to the grid (typically $0.25 to $0.35/kWh). Under NEM 3.0, the export credit is slashed by roughly 75% to 80% down to wholesale "avoided cost" rates (~$0.05 to $0.08/kWh), while grid import electricity remains at full retail price.
Because exporting solar electricity earns only $0.05 to $0.08/kWh, selling power to the utility is no longer profitable. Adding a battery allows you to store that excess power during the day and consume it yourself at night, avoiding the need to purchase expensive $0.35/kWh grid power.
Under net metering, your electric utility tracks your net energy imports and exports each month. At the end of a 12-month billing cycle, the utility issues a single cumulative reconciliation statement called the True-Up Bill, where you either pay for net imported energy or receive credit for surplus generation.
Self-consumption is the percentage of solar electricity produced by your panels that is immediately consumed by appliances inside your home without being sent out across the utility meter. In homes without batteries, self-consumption is typically 30% to 50%; with batteries, it reaches 80% to 90%.
No. Existing solar customers who submitted complete interconnection paperwork before the NEM 3.0 deadline are grandfathered into NEM 2.0 rules for a period of 20 years from their original permission to operate (PTO) date.