Net Metering by State (2026 Guide)

With the 30% federal residential solar tax credit gone (it expired December 31, 2025), the single biggest factor in whether solar pays off is now how your utility credits the electricity your panels send back to the grid — your state's net metering policy.

The differences are enormous. In some states your utility credits you the full retail rate for every kilowatt-hour you export. In others, you get a few cents on the dollar — or nothing at all. This guide covers every state, current as of July 2026.

Key Takeaways

• About 20 states still offer full retail net metering (1:1 credit) for new residential customers — including Florida, New Jersey, Maryland, Colorado, Virginia, Oregon, Washington, and Wyoming.
• Major states have moved to net billing with reduced export credits: California (NEM 3.0), Arizona, North Carolina, Illinois (new in 2025), Michigan, and Idaho (a 31% cut in September 2025).
• A handful of states have no mandated compensation at all: South Dakota, Tennessee (TVA territory), and Alabama (avoided cost plus a monthly solar fee).
• Rules are changing fast — Pennsylvania, Ohio, Iowa, and Washington all have reductions pending or deadlines approaching. Where policy is tightening, locking in now usually grandfathers you at today's better rate for 10–25 years.

How to Read This Table

• Full retail (1:1): every exported kWh offsets one imported kWh at the full price you pay. Best case.
• Near retail: credit slightly below retail (typically 75–90%).
• Net billing / export rate: exports credited at a set rate well below retail, often based on "avoided cost" (what the utility would pay for wholesale power).
• Avoided cost only / none: exports earn wholesale rates (~2–4¢/kWh) or nothing. Solar still works here, but only if you use most of your power yourself (often with a battery).

Net Metering Rules in All 50 States (2026)

What This Means for Your Solar Decision

If you're in a full-retail state (Florida, New Jersey, Maryland, Colorado, Virginia, Oregon, Washington, DC, Wyoming, Montana, Minnesota, Iowa, Delaware, Maine and others): solar math still works much the way it did before the federal credit ended — every panel-hour offsets your bill at full value. These are the states where going solar in 2026 remains most clearly worth it.

If you're in a net-billing state (California, Arizona, Idaho, Illinois, Michigan, North Carolina, Utah, Arkansas and others): exports earn far less than retail, so the game is self-consumption. Pairing panels with a battery — charging it midday, using it at night — recovers most of the lost value. This is why battery attachment rates in California have soared under NEM 3.0. See Is a Solar Battery Worth It in 2026?

If you're in a low or no-compensation state (South Dakota, Tennessee, Alabama, Oklahoma, North Dakota): solar can still make sense for offsetting your own daytime usage, but size the system to what you actually consume — oversizing just donates power to the utility.

If your state has a deadline (North Carolina's January 2027 bridge-rate cutoff, Pennsylvania's utility filings, Iowa's 2027 trigger, Washington's 2029 sunset): interconnecting sooner generally locks in today's better rate for a decade or more. Grandfathering has protected early customers in nearly every state that changed its rules.

Related guides: How Much Does Solar Cost in 2026? · Solar Incentives 2026 · Solar Tax Credit 2026 · Is Solar Worth It in 2026? · Solar by State

Frequently Asked Questions

What is net metering?
Net metering is a billing arrangement where your utility credits you for excess solar electricity your panels send to the grid. Under full retail net metering, one exported kWh cancels out one imported kWh on your bill.

Which states still have full retail net metering in 2026?
Roughly 20 states, including Florida, New Jersey, Maryland, Delaware, Colorado, Virginia, Minnesota, Iowa, Wisconsin (most utilities), Montana, Wyoming, Oregon, Washington, and Washington DC.

Did net metering replace the federal solar tax credit?
No — they were always separate. The 30% federal residential tax credit (Section 25D) expired December 31, 2025 and is not available for cash or loan purchases in 2026. Net metering is a state/utility policy and is now the biggest driver of solar savings. A federal credit (48E) still flows through solar leases and PPAs where the company owns the system — see our Solar Tax Credit 2026 guide.

What's the difference between net metering and net billing?
Net metering credits exports at the retail rate (1:1). Net billing credits them at a lower, separately set export rate — often based on the utility's avoided cost. Net billing states favor batteries and self-consumption.

Will my rate change after I install solar?
In almost every state that has reduced compensation, existing customers were grandfathered at their original terms for 10–25 years. Installing before a rule change generally locks in the better deal.

Is solar still worth it in states without net metering?
Often yes, if you size the system to your own daytime usage or add a battery — you're offsetting retail-priced power you'd otherwise buy. See Is Solar Worth It in 2026?

See What Solar Would Actually Save You Under Your State's Rules

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Sources: state public utility commissions (CPUC, PUCN, PUCO, Michigan PSC, MN PUC, and others), DSIRE, utility tariffs (FPL, Georgia Power, Duke Energy, Idaho Power, Rocky Mountain Power, Hawaiian Electric), and 2026 regulatory rulings including the Virginia SCC order (April 2026), the California appeals court NEM 3.0 decision (March 2026), and the Pennsylvania PPL settlement (June 2026). Last updated July 2026.