Net Metering vs Net Billing: What It Means for Your Solar Savings

The difference in plain words, where each one applies in BC, California and Ontario, and how it changes the size of solar system to buy. Checked 2026-09-29.

By Sam Menard

Short answer: with net metering, power you send to the grid is credited kWh for kWh at the same price you pay. With net billing, exports are credited at a set rate, usually lower than the price you pay. BC Hydro ended net metering for new customers on July 1, 2026 and now pays 10 cents per kWh for exports. California moved most new solar customers to net billing in April 2023.

How each one works

Net meteringNet billing
Credit for power you exportSame as the price you pay to buy powerA set export rate, often lower than the retail price
Is midday solar surplus worth much?Yes, you get full value laterLess, so use it yourself when you can
Best system sizeCan be sized to cover your whole yearSized closer to what you use in daylight
Does a battery help?Mostly for outagesYes: it stores surplus so you use it instead of exporting it

What the difference is worth: try your numbers

Enter what you expect to export in a year, what you pay per kWh to buy power, and the export credit. This is an illustration with numbers you supply, not a quote.

Value under net metering: $450 a year

Value under net billing: $300 a year

Difference: $150 a year

The starting numbers are examples. Use your own bill for the price you pay; 10 cents is BC Hydro's export rate.

Where it applies

British Columbia

BC Hydro's net metering rate (RS 1289) closed to new customers on July 1, 2026. New solar owners are on the self-generation rate (RS 2289), which pays 10 cents per kWh for power you export, credited each billing cycle. Existing net metering customers stay on it until 10 years from their net metering start date, then move to RS 2289. (BC Hydro source.) Our BC net metering guide covers what to do if you're planning solar now, and the BC Hydro rebates page lists the solar and battery rebates.

California

PG&E, SCE and SDG&E customers who applied for new solar after April 14, 2023 are on the Net Billing Tariff. Exports are credited at hourly avoided-cost values, far below the retail price. SMUD and LADWP are not regulated by the state commission and set their own rules (SMUD has a Solar and Storage Rate). (CPUC source.) See California rebates and SMUD's programs.

Ontario

In Ontario the Home Renovation Savings solar rebate cannot be taken together with a net metering agreement with your local utility. Check with your utility before you sign a solar contract. (Program page.) Our Ontario solar rebate vs net metering guide walks through the choice.

Anywhere else

We haven't verified the export rules for every province and state yet. Ask your utility two questions before you buy: what do you credit me for power I send to the grid? and does that rate change after some number of years?

What this means for the size of system you buy

Common questions

What is the difference between net metering and net billing?

With net metering, each kWh you send to the grid cancels out a kWh you use later, at the same price. With net billing, the power you send out is credited at a set export rate, and that rate is often lower than what you pay to buy power.

Is net metering still available in BC?

Not for new customers. BC Hydro closed net metering to new customers on July 1, 2026. New solar owners are on the self-generation rate, which pays 10 cents per kWh for power sent to the grid. Existing net metering customers stay on it until 10 years from their net metering start date.

What is net billing in California?

PG&E, SCE and SDG&E customers who applied for new solar after April 14, 2023 are on the Net Billing Tariff. Exports are credited at hourly values that are far below the retail price. SMUD and LADWP set their own rules.

Does net billing make solar a bad idea?

Not always, but it changes how to size it. Under net billing, power you use yourself is worth more than power you export, so systems sized to your daytime use, or paired with a battery, tend to do better than oversized ones.

Something out of date? Email [email protected] and we'll check it within a week.

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