If you’re thinking about commercial solar, you’ve probably come across the terms net metering and net billing. And if you’re like most business owners, you’ve probably wondered: What’s the actual difference in net metering vs. net billing—and why does it matter to my bottom line?
Here’s the short version: how your utility handles the solar energy your system sends back to the grid is just as important as how much your system generates. The credit structure shapes your payback period, affects your monthly bill, and impacts how your system should be designed from day one.
This isn’t a footnote in your solar strategy—it’s the foundation. Let’s break it down.
What Is Net Metering?
Net metering lets your business push excess solar energy into the grid and pull it back later—without penalty. You’re credited at the same retail rate you’d normally pay for electricity.
That means if your system overproduces during low-usage hours, those extra kilowatt-hours roll forward as credits. Later, when your business draws power, those credits offset your bill.
Some utilities settle monthly, others true-up annually, but the outcome is the same: a 1-to-1 value exchange that can significantly reduce your bill.
What Is Net Billing?
Net billing looks similar but works on a different equation. You still export excess energy, but instead of getting a full retail-rate credit, you’re paid a lower rate—usually wholesale or avoided cost.
That energy shows up as a dollar-value credit, not a kWh credit. So when you buy electricity later, you’re paying full price, and those earlier exports cover less of your cost.
More utilities are shifting toward net billing as they move away from traditional net metering. The model still works, but it demands a more focused design strategy to keep your ROI in check.
Side-by-Side: Net Metering vs. Net Billing
| Feature | Net Metering | Net Billing |
| Credit Type | kWh credit | Dollar-value credit |
| Credit Rate | Retail | Wholesale / avoided cost |
| Billing Method | Use – production | Full use billed, credits subtracted |
| Savings Potential | Higher, if sized right | Depends on timing and usage match |
| Design Strategy | Match/exceed usage | Prioritize on-site usage |
| Utility Trend | Supported in some states | Becoming standard in many regions |
Why This Matters to Your Solar ROI
The billing structure you’re under—net metering vs. net billing—directly impacts how your system should be designed, how fast it pays off, and how your business manages energy.
Some businesses benefit from a system that slightly overproduces to rack up credits. Others need a tighter design focused on using energy as it’s generated. The only way to know what’s best is to understand the rules your utility operates under—and how your building uses power throughout the day.
That’s where your solar contractor makes a difference. If they’re not digging into your usage patterns and building a system based on your utility’s billing methodology, your ROI is on shaky ground. A system that looks good on paper won’t deliver if it isn’t built to match how your utility credits energy and how your building actually uses it.
How Utilities Are Evolving
Utilities are constantly evaluating and adjusting how they handle solar. In some areas, traditional net metering is still going strong. In others, utilities have introduced net billing models or modified export values. There’s no one-size-fits-all approach.
What’s consistent is the need to understand your utility’s current policy before moving forward. Whether you’re getting full retail credit or a value-based export rate, your solar strategy should be built around the real rules—not assumptions.
At Artisun Solar, this is where we start. We check your rate structure upfront, review credit policies, and design a system that performs under your specific conditions. No matter what the policy looks like, smart planning always pays off.
What to Know Before You Invest in Solar
Before you approve a system design or sign a contract, you need to know how your utility handles solar energy exports. Not after install—before.
You’ll want to confirm whether your utility uses net metering or net billing, what rates apply, if there are system size caps, how often credits roll over, and whether solar can offset demand charges. These aren’t small details—they directly impact your return.
That’s why at Artisun Solar, we start with this. Every system we design is based on the actual rules your utility uses. We don’t build for “average scenarios”—we build for your business.
Artisun’s Approach
We engineer commercial solar systems to perform—on your roof, on your balance sheet, and under your utility’s rate structure.
Our process starts by evaluating your current rates and how your utility credits solar. We then design a system that works with your facility’s energy profile, not against it. We don’t guess at ROI—we model it based on real numbers from your actual bill.
If your utility uses net billing, we plan for it. If you qualify for full retail net metering, we optimize for that. Either way, the strategy is built into the design.
Because a great-looking solar install that doesn’t hit its financial targets isn’t the kind of project we sign our name to.
Final Word: Understand the Structure, Then Build the System
Whether you’re in a net metering or net billing territory, solar can be a smart investment. But if the system isn’t built around how your utility handles solar credits, you’re rolling the dice on your ROI.
The credit structure impacts everything—from panel count to load strategy to how fast you get paid back. This is where smart design, sharp analysis, and a solar partner who knows the rules make all the difference.
Want to know how your utility handles solar exports—and what it means for your payback?
Request Your Free Solar Assessment Today.
Learn more by checking out our Guide To Solar Savings: Understanding the ROI and Benefits of Commercial Solar Energy
