Short answer: Net metering lets the solar power your system makes offset the power you buy from the grid. When you send more to the grid than you use, your utility typically gives you a bill credit, but how much that credit is worth depends on your state and your utility. In Missouri it is often well below what you pay per kilowatt-hour. In Kansas it is often closer to the retail rate. In Illinois, newer systems are typically credited at the supply portion of your rate. Always confirm the current terms with your utility before you decide.
Solar panels make the most power in the middle of the day, which is often when you are using the least. Net metering is the billing arrangement that decides what happens to the extra. The rules are set by state law and utility tariffs, and they have changed in recent years, so it is worth checking the current version for your address.
How it works in each state
- Missouri. Under state rules, regulated utilities, municipal utilities and co-ops offer net metering to customers with systems up to 100 kW. If you send more power to the grid than you use in a billing period, the extra is typically credited at the utility’s avoided-cost rate, which is generally lower than the retail rate. Credit terms and expiration vary by utility.
- Kansas. Kansas investor-owned utilities such as Evergy are required to offer net metering, and many municipal and co-op utilities do too. Extra power is typically credited closer to the retail rate, and unused credits often roll forward month to month before expiring at a set date each year. Some utilities offer a separate net billing option, so it is worth asking which one fits your usage.
- Illinois. For systems connected to the grid after December 31, 2024, in ComEd, Ameren Illinois and MidAmerican territories, extra power is typically credited at the supply portion of your electric rate instead of the full retail rate. Earlier systems may be treated differently, so check the date your system was or will be connected.
What this means when sizing a system
- Bigger is not always better. When extra power is credited below the retail rate, a system sized closer to your own usage often makes more sense than one built to export a lot.
- Your usage pattern matters. Homes that use more power during the day typically use more of their solar directly, which is not affected by the credit rate.
- Batteries can change the math. Storing extra power for evening use instead of exporting it may be worth considering where credits are low.
- Roof first. A system only helps if the roof under it is in good shape, which is why we review the roof before sizing anything.
Questions to ask your utility and installer
- What credit do I get for extra power, and does it change over time?
- Do unused credits roll over, and when do they expire?
- Is there a system size limit or a fee for connecting?
- What rules apply to my system based on when it is connected?
How SunSent approaches this
Because SunSent handles both roofing and solar in-house, we look at your roof and your usage together before recommending a system size. We walk through how your utility’s current net metering terms may affect what size makes sense, and we do not guess at credit rates, so you hear them from your utility.
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FAQ
Frequently Asked Questions
It is a billing arrangement where the power your solar system sends to the grid is credited against the power you take from it. The value of that credit depends on your state and utility.
Usually not. Extra power is most often applied as a bill credit, and credits may expire. Check your utility’s terms.
Yes. For new systems connected after December 31, 2024, extra power is typically credited at the supply portion of the rate instead of the full retail rate. Confirm the rules for your connection date with your utility.
No. Terms vary by utility, and municipal utilities and co-ops can have their own rules. Look up your own utility before deciding.
It may be worth considering, since stored power can be used at night instead of exported. Whether it makes sense depends on your usage, your utility’s rules and the cost, so ask for a project-specific review.