EnergyTools
Net Metering

NEM Policy Tracker

Compare net energy metering policies and export rates for all 50 US states. See how your state's NEM policy impacts solar payback.

Full Retail NEM

22

states

Avg NEM Rate

$0.112

per kWh

Highest Rate

$0.305

Massachusetts

Lowest Rate

$0.040

Tennessee

Interactive NEM Payback Calculator

Select your state and enter system details to see how NEM policy affects your solar payback period.

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Select your state and system details above, then click Calculate.

50-State NEM Comparison

Click any column header to sort. Filter by policy type.

State ↕ NEM Rate ($/kWh) ↕ Policy Type ↕ Retail Rate ↕ % of Retail ↕ Status

California NEM 3.0 (Net Billing Tariff)

The most impactful NEM policy change in the country

Confirmed — Court Challenge Defeated (March 2026)
Policy Export Rate Type Status
NEM 2.0 (pre-April 2023) $0.30–$0.40/kWh Near-retail Grandfathered until 2031
NEM 3.0 (current) $0.05–$0.08/kWh Avoided cost Final — Confirmed
Impact ~75–85% reduction in export compensation

What This Means for Homeowners

  • Under NEM 2.0, excess solar was credited at near-retail rates ($0.30–$0.40/kWh), making solar very lucrative
  • Under NEM 3.0, exports are credited at the avoided-cost rate (~$0.05–$0.08/kWh), dramatically reducing the value of exported energy
  • Battery storage is now critical — store excess solar and use it at night rather than exporting at low rates
  • Solar still makes financial sense in CA due to high retail rates ($0.30–$0.40+/kWh), but payback is longer (7–12 years vs 5–7 under NEM 2.0)

Court Challenge Status

A legal challenge to NEM 3.0 was filed but defeated in March 2026, confirming the rates as final. The CPUC's Net Billing Tariff (Decision 22-12-056) is no longer subject to legal challenge. Existing NEM 2.0 customers remain grandfathered at their legacy rates until 2031.

California vs. Texas: Different Solar Markets

CA NEM 3.0 Export Rate

$0.05–$0.08/kWh

Fixed, regulated tariff

TX REP Buyback Rates

$0.03–$0.15/kWh

Market-based, can spike

Market Structure

CA: Regulated · TX: Deregulated

CA = utility tariff; TX = competitive REP plans

Explore the Texas Solar Buyback Calculator

Highest NEM Rates

1 Massachusetts
$0.305 /kWh
2 Connecticut
$0.272 /kWh
3 Rhode Island
$0.243 /kWh
4 Alaska
$0.228 /kWh
5 New York
$0.224 /kWh

Lowest NEM Rates

1 Tennessee
$0.040 /kWh
2 Idaho
$0.040 /kWh
3 Oklahoma
$0.042 /kWh
4 South Dakota
$0.045 /kWh
5 Alabama
$0.045 /kWh

Browse by State

AL

Alabama

Avoided Cost

$0.045/kWh

31% of retail (Active)
AK

Alaska

Full Retail

$0.228/kWh

100% of retail (Active)
AZ

Arizona

Net Billing

$0.094/kWh

70% of retail (Active)
AR

Arkansas

Net Billing

$0.055/kWh

49% of retail (Active)
CA

California

NEM 3.0

$0.065/kWh

20% of retail (Final)
CO

Colorado

Full Retail

$0.128/kWh

100% of retail (Active)
CT

Connecticut

Full Retail

$0.272/kWh

100% of retail (Active)
DE

Delaware

Full Retail

$0.135/kWh

100% of retail (Active)
FL

Florida

Reduced Net Metering

$0.069/kWh

50% of retail (Active)
GA

Georgia

Net Billing

$0.060/kWh

48% of retail (Active)
HI

Hawaii

Net Billing

$0.080/kWh

22% of retail (Active)
ID

Idaho

Avoided Cost

$0.040/kWh

40% of retail (Active)
IL

Illinois

Full Retail

$0.146/kWh

100% of retail (Active)
IN

Indiana

Net Billing

$0.060/kWh

49% of retail (Active)
IA

Iowa

Full Retail

$0.122/kWh

100% of retail (Active)
KS

Kansas

Net Billing

$0.055/kWh

44% of retail (Active)
KY

Kentucky

Avoided Cost

$0.050/kWh

43% of retail (Active)
LA

Louisiana

Full Retail

$0.103/kWh

100% of retail (Active)
ME

Maine

Full Retail

$0.215/kWh

100% of retail (Active)
MD

Maryland

Full Retail

$0.159/kWh

100% of retail (Active)
MA

Massachusetts

Net Metering 2.0

$0.305/kWh

100% of retail (Active)
MI

Michigan

Net Billing

$0.085/kWh

54% of retail (Active)
MN

Minnesota

Full Retail

$0.143/kWh

100% of retail (Active)
MS

Mississippi

Avoided Cost

$0.048/kWh

41% of retail (Active)
MO

Missouri

Full Retail

$0.116/kWh

100% of retail (Active)
MT

Montana

Full Retail

$0.115/kWh

100% of retail (Active)
NE

Nebraska

Avoided Cost

$0.048/kWh

44% of retail (Active)
NV

Nevada

Net Billing

$0.075/kWh

60% of retail (Active)
NH

New Hampshire

Full Retail

$0.223/kWh

100% of retail (Active)
NJ

New Jersey

Full Retail

$0.172/kWh

100% of retail (Active)
NM

New Mexico

Full Retail

$0.135/kWh

100% of retail (Active)
NY

New York

Net Metering 2.0

$0.224/kWh

100% of retail (Active)
NC

North Carolina

Full Retail

$0.120/kWh

100% of retail (Active)
ND

North Dakota

Avoided Cost

$0.048/kWh

49% of retail (Active)
OH

Ohio

Net Billing

$0.065/kWh

51% of retail (Active)
OK

Oklahoma

Avoided Cost

$0.042/kWh

40% of retail (Active)
OR

Oregon

Full Retail

$0.132/kWh

100% of retail (Active)
PA

Pennsylvania

Full Retail

$0.145/kWh

100% of retail (Active)
RI

Rhode Island

Full Retail

$0.243/kWh

100% of retail (Active)
SC

South Carolina

Net Billing

$0.060/kWh

45% of retail (Active)
SD

South Dakota

Avoided Cost

$0.045/kWh

40% of retail (Active)
TN

Tennessee

Avoided Cost

$0.040/kWh

37% of retail (Active)
TX

Texas

Net Billing

$0.055/kWh

43% of retail (Active)
UT

Utah

Net Billing

$0.060/kWh

57% of retail (Active)
VT

Vermont

Net Metering 2.0

$0.205/kWh

100% of retail (Active)
VA

Virginia

Full Retail

$0.135/kWh

100% of retail (Active)
WA

Washington

Full Retail

$0.108/kWh

100% of retail (Active)
WV

West Virginia

Full Retail

$0.120/kWh

100% of retail (Active)
WI

Wisconsin

Net Billing

$0.070/kWh

46% of retail (Active)
WY

Wyoming

Avoided Cost

$0.050/kWh

48% of retail (Active)

NEM rates shown are approximate export compensation rates and may vary by utility within a state. Data should be verified with your local utility. Last updated June 2026.