{
  "slug": "net-metering-vs-buyback",
  "title": "Net Metering vs. Buyback Rate Calculator",
  "heading": "Net Metering vs. Buyback Comparison",
  "category": "financial",
  "url": "https://www.revenuelab.fyi/toolbox/net-metering-vs-buyback",
  "summary": "See how much your export compensation rate actually matters.",
  "description": "Not all solar compensation is equal. Full retail net metering credits every exported kWh at the same rate you pay for imports; net billing or buyback programs (common in California under NEM 3.0, and much of the Southeast) pay a much lower avoided-cost rate for exports, often 25-50% of retail. This tool splits your production into self-consumed and exported portions, values each at its correct rate, and shows the annual bill impact difference between a favorable and unfavorable compensation structure. This is the single biggest variable utilities changed in the 2020s to slow rooftop solar economics, and quotes that don't model it correctly overstate savings.",
  "formula": "Bill credit = (self-consumed kWh × retail rate) + (exported kWh × export rate).",
  "dateModified": "2026-09-30",
  "run_url": "https://www.revenuelab.fyi/api/public/calc?tool=net-metering-vs-buyback",
  "inputs": [
    {
      "id": "annualProd",
      "label": "Annual solar production",
      "kind": "number",
      "hint": null,
      "default": 11000,
      "unit": "kWh",
      "min": 500,
      "max": null
    },
    {
      "id": "selfConsumePct",
      "label": "Share self-consumed (not exported)",
      "kind": "number",
      "hint": null,
      "default": 30,
      "unit": "%",
      "min": 0,
      "max": 100
    },
    {
      "id": "retailRate",
      "label": "Retail electricity rate",
      "kind": "number",
      "hint": null,
      "default": 0.18,
      "unit": "$/kWh",
      "min": 0.05,
      "max": 0.6
    },
    {
      "id": "exportRate",
      "label": "Export/buyback rate",
      "kind": "number",
      "hint": null,
      "default": 0.06,
      "unit": "$/kWh",
      "min": 0,
      "max": 0.6
    }
  ],
  "outputs": [
    {
      "id": "buybackCredit",
      "label": "Annual credit at your export rate",
      "format": "currency",
      "hint": null,
      "primary": true
    },
    {
      "id": "fullNetMeteringCredit",
      "label": "Credit under full retail net metering",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "lostValue",
      "label": "Annual value lost to low export rate",
      "format": "currency",
      "hint": null,
      "primary": false
    },
    {
      "id": "effectiveRate",
      "label": "Blended effective rate per kWh",
      "format": "decimal",
      "hint": null,
      "primary": false
    }
  ],
  "worked_example": {
    "inputs": [
      "Annual solar production: 11000 kWh",
      "Share self-consumed (not exported): 30 %",
      "Retail electricity rate: 0.18 $/kWh",
      "Export/buyback rate: 0.06 $/kWh"
    ],
    "outputs": [
      "Annual credit at your export rate: $1,056",
      "Credit under full retail net metering: $1,980",
      "Annual value lost to low export rate: $924",
      "Blended effective rate per kWh: 0.096"
    ]
  },
  "how_to": {
    "title": "How to use this",
    "steps": [
      "Enter annual solar production (kWh).",
      "Enter share self-consumed (not exported) (%).",
      "Enter retail electricity rate ($/kWh).",
      "Enter export/buyback rate ($/kWh).",
      "Read your annual credit at your export rate on the right — it updates as you type.",
      "Hit Share to keep the scenario or send it to someone."
    ]
  },
  "scenarios": [
    {
      "name": "Conservative",
      "description": "Lower-end numbers — what if things land soft?",
      "values": {
        "annualProd": 6600,
        "selfConsumePct": 20,
        "retailRate": 0.108,
        "exportRate": 0.036
      }
    },
    {
      "name": "Typical",
      "description": "Defaults — the most common real-world setup.",
      "values": {
        "annualProd": 11000,
        "selfConsumePct": 30,
        "retailRate": 0.18,
        "exportRate": 0.06
      }
    },
    {
      "name": "Ambitious",
      "description": "Higher-end numbers — what if things really pop?",
      "values": {
        "annualProd": 17600,
        "selfConsumePct": 50,
        "retailRate": 0.288,
        "exportRate": 0.096
      }
    }
  ],
  "limitations": [
    "Results are estimates before tax, fees, and inflation unless an input explicitly covers them.",
    "Rates are treated as fixed for the whole period — variable-rate products will drift from this projection.",
    "This is educational maths, not financial advice. Check anything contractual with the lender or your accountant."
  ],
  "faq": [
    {
      "q": "Why does self-consumption percentage matter so much?",
      "a": "Every kWh you use directly as it's generated is worth full retail value regardless of your export rate — it's a kWh you didn't have to buy. Only the exported surplus gets hit by a lower buyback rate. Homes with daytime usage (EV charging at noon, work-from-home AC) self-consume more and are less exposed to bad export rates."
    },
    {
      "q": "What is NEM 3.0 and why does it matter?",
      "a": "California's 2023 net-metering overhaul cut export compensation roughly 75% compared to the prior NEM 2.0 tariff, pushing export value down to an avoided-cost rate around 5-10 cents/kWh versus 25-40 cent retail rates. It made battery storage far more valuable there since storing and self-consuming beats exporting."
    },
    {
      "q": "Does a battery fix a bad buyback rate?",
      "a": "Yes, largely. A battery lets you store midday solar and use it in the evening instead of exporting it for a low credit, effectively converting export-rate kWh into self-consumed, full-retail-value kWh. This is why battery attach rates jumped sharply in low-buyback-rate states."
    },
    {
      "q": "How do I find my utility's actual export rate?",
      "a": "Check your interconnection agreement or net billing tariff filed with your state utility commission — it's not always disclosed clearly in a solar sales quote. Ask explicitly: 'What is the per-kWh rate for kWh I export beyond what I use in that billing period?'"
    }
  ],
  "related": [
    "https://www.revenuelab.fyi/toolbox/solar-payback-itc",
    "https://www.revenuelab.fyi/toolbox/time-of-use-shifting",
    "https://www.revenuelab.fyi/toolbox/battery-backup-runtime"
  ],
  "license": "CC-BY-4.0",
  "citation": "RevenueLab — Net Metering vs. Buyback Rate Calculator (https://www.revenuelab.fyi/toolbox/net-metering-vs-buyback)"
}