Definition and Solar Context
Net metering is a billing mechanism through which residential solar system owners receive credit for electricity exported to the grid. In territories where net metering is available, the value of exported energy offsets a portion of the homeowner's electricity bill. GetSunScore references net metering policies as a key input to the SunScore™ Projection Engine when generating 20-year solar savings projections.
The presence or absence of a net metering policy in a given utility territory materially affects the estimated value of rooftop solar generation. All projections incorporating net metering credits are modeled estimates based on publicly available utility tariff data.
What Does Net Metering Mean?
Net metering is a regulatory billing arrangement in which a utility credits a solar system owner for electricity fed back into the grid at or near the retail rate of electricity. Under a net metering structure, the electric meter effectively runs backward when the system produces more electricity than the household consumes.
The accumulated credit reduces the customer's monthly utility bill. The specific credit rate, carryover rules, and eligibility thresholds vary by utility territory and state regulatory framework.
Why Net Metering Matters in Solar Savings Modeling
Net metering directly affects the financial modeling of rooftop solar systems. When the SunScore™ Projection Engine applies a net metering credit to exported generation, the estimated savings range increases significantly compared to a no-export or reduced-rate buyback scenario.
Over a 20-year modeled projection, the difference between full retail net metering and a reduced buyback rate can represent a substantial variance in estimated payback period. GetSunScore applies utility-specific net metering data where available and flags when a territory operates under alternative export compensation structures.
How Net Metering Applies in Texas
Texas does not mandate net metering at the state level. Under ERCOT's deregulated retail market, net metering policies — if any — are set at the retail electric provider (REP) level or, in the case of municipal utilities and cooperatives, at the utility level.
Some Texas REPs offer buyback plans as a voluntary alternative to net metering. The SunScore™ Projection Engine accounts for ERCOT market structure by applying territory-specific export compensation data sourced from publicly available utility filings. Homeowners in Texas served by investor-owned utilities within ERCOT should verify current export compensation policies with their REP.
Frequently Asked Questions
Net metering is a billing arrangement where your utility credits you for excess solar electricity you send to the grid. The credit reduces your bill. Net metering policies vary significantly by utility and state.
The SunScore™ Projection Engine applies net metering credit rates from publicly available utility data. Where full retail net metering is available, modeled savings projections tend to be higher than in territories with reduced buyback rates. All outputs are non-binding estimates.
Texas does not have a statewide net metering mandate. Export compensation in Texas depends on your retail electric provider or utility. GetSunScore sources export compensation data from publicly available Texas utility filings for modeling purposes.
Carryover rules for net metering credits vary by utility. Some utilities allow annual carryover; others reset credits monthly. The SunScore™ Projection Engine uses utility-specific policy data where available. Homeowners should confirm current terms with their utility provider.
Net metering typically credits excess generation at or near the full retail electricity rate. A buyback plan, by contrast, may compensate excess generation at a lower rate — often the wholesale or avoided cost rate. See the Buyback Plan glossary entry for additional context.
All projections referenced on this page are modeled scenarios based on publicly available datasets including NREL, EIA, and Texas utility rate filings (reference year: 2024). Results are non-binding estimates and may vary based on individual system design, usage, local utility tariffs, and regulatory conditions. GetSunScore does not install solar systems, provide financial advice, or guarantee savings.