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Each kWh exported to the grid earns a credit based on your utility's net metering rate. Full retail net metering (NEM 1.0) credits at the full retail rate; NEM 2.0 and NEM 3.0 may apply time-of-use or avoided-cost rates to exports.
Monthly Credit = kWh_exported × retail_rateEnergy consumed on-site avoids purchasing from the grid at retail rates. Self-consumption savings typically represent 60–80% of total solar value in residential systems with moderate export ratios.
Self-Consumption Savings = kWh_self_used × retail_rateSum monthly export credits and self-consumption savings across all billing periods. Account for seasonal production variation and time-of-use rate structures if applicable.
Annual Savings = Σ(monthly credits) + Σ(self-consumption savings)Updated: July 2026
A 8 kW system producing 11,000 kWh/year with 65% self-consumption at $0.28/kWh retail rate.
→ Self-consumption savings: $2,002; export credits: $1,078; total: ~$3,080/year
A 12 kW system on time-of-use rates with peak export during summer afternoons.
→ Blended export credit ~$0.25/kWh; total annual savings: ~$4,200–4,800
A new solar installation under NEM 3.0 with export compensation at ~$0.05–0.08/kWh and battery for peak shifting.
→ Self-consumption savings: $2,240; export credits: $120; battery shifts value to self-consumption
Many utilities now compensate exports at avoided-cost or wholesale rates (NEM 3.0). Verify your specific tariff — export value may be 70–85% lower than retail.
Some net metering programs reconcile credits annually. Excess generation may be paid at a lower rate or forfeited at true-up. Model the settlement month, not just monthly credits.
Annual kWh depends on location, tilt, shading, and inverter clipping. Use PVWatts or site-specific production estimates, not kW rating × peak sun hours alone.
Net metering credits exported solar generation against your utility bill at retail or near-retail rates. This calculator estimates annual savings from both self-consumed energy and exported kWh credits under your utility's net metering tariff.