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Net Metering Value Calculator

Net metering lets rooftop solar receive retail or near-retail credit for excess generation.

%
$
%
$

Annual solar value

$41,250

On-site value

$26,250

Export value

$7,000

How the math works

On-site = consumption × retail. Export = export × retail × NEM %. + demand reduction.

250k × 75% × $0.14 + 250k × 25% × $0.14 × 80% + $8,000 = $26,250 + $7,000 + $8,000 = $41,250.

How to Use

  1. Enter annual solar production kWh.
  2. Enter on-site consumption %.
  3. Enter retail rate.
  4. Enter net metering credit rate %.
  5. Enter demand charge reduction.
  6. Read annual solar value.

Frequently Asked Questions

Net metering structure?

Traditional 1-for-1 net metering: excess solar exported at retail rate ($0.10-0.30/kWh). Value of solar tariff: credit at calculated 'value' (often 70-90% of retail). Time-of-use rate: export credit based on time-of-day (lower off-peak, higher on-peak). Feed-in-tariff (FiT): pre-set rate. California NEM 3.0: export rate ~25-40% of retail — major compression.

NEM policy landscape?

California NEM 3.0 (2023): export credit cut 75-85% from NEM 2.0. Retroactive grandfathering. Hawaii: no net metering since 2015 (self-supply only). Nevada: partial net metering. Arizona: compensation near retail. Florida, Texas: varies by utility. Rollback trend: utilities lobby for less favorable terms citing 'cost shift'. Solar customers impacted financially; many opting for battery storage to self-consume.

Battery addition?

Battery + solar: self-consume more, export less, avoid unfavorable export rates. Battery cost: $8-20k residential, $100-500k commercial. ITC 30% applies if paired with solar. Capacity: 10-15 kWh residential, 50-500 kWh commercial. Offsets: 60-90% of previously exported kWh. Combined system: restore ~70-85% of pre-NEM-3 economics in affected markets.

Commercial value?

Commercial buildings: high on-site consumption during daytime solar production = minimal export. Demand charge reduction: solar + battery can cut peak demand charges $5-40/kW-month. Often bigger than energy savings. Whole-building NEM analysis critical. REC + ITC + energy + demand = 4-component value stack. Project ROI driven primarily by demand reduction in commercial vs retail credits in residential.

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