Net Metering by State 2026: Which States Still Have Full Retail Credit?

Net metering is the policy that determines what happens when your solar panels produce more electricity than your home uses at any given moment. The surplus flows to the grid and — under full retail net metering — your utility credits your account at the same rate you pay to buy electricity. Over a billing period, you owe only the net difference between what you used and what you generated. For most homeowners, this single policy determines whether solar's economics are excellent, good, or marginal.

The landscape in 2026: roughly 38 US states still have some form of net metering, but the policies vary enormously. Full retail net metering — where every exported kWh earns a credit equal to your retail rate — remains in about 28 states. The remaining states have moved to "net billing," "avoided cost crediting," or other structures that pay substantially less for exports, sometimes as little as $0.03–$0.06/kWh versus a retail rate of $0.15–$0.35/kWh.

States with the strongest net metering in 2026: Massachusetts, New Jersey, New York, Maryland, Virginia, Colorado, Minnesota, and most of New England maintain full or near-full retail net metering. These are the states where sizing solar to cover 100% of annual usage makes the most financial sense — every kWh you export in summer offsets a kWh you import in winter at the same value.

States that have weakened net metering: California moved to "NEM 3.0" (officially NBT — Net Billing Tariff) in 2023, slashing export credits to approximately $0.05–$0.08/kWh from the former retail rate of $0.25–$0.30/kWh. This dramatically changed the California solar calculus: a battery is now essentially required for a new California installation to achieve comparable economics to a pre-2023 system. Hawaii, Nevada, and Arizona have made similar moves.

States with no net metering: A handful of states — primarily in the Southeast — have no statewide net metering mandate. Utilities in these states set their own export policies, which vary from modest avoided-cost credits to outright prohibition on export. Alabama, Tennessee (TVA service territory), and parts of Georgia and Mississippi fall into this category. Solar can still be valuable in these markets through self-consumption strategies and batteries, but the economics are harder.

What to do if your state has weak net metering: First, maximize self-consumption by setting your dishwasher, washer, dryer, and EV charger to run during solar production hours (typically 9 AM to 3 PM). Second, model a battery — in states with poor export rates, storing midday surplus for evening use is often worth more than exporting cheaply. Third, consider slightly undersizing to avoid significant export in a net-billing state, since the grid credit may not fully compensate for the exported energy.

Use our Net Metering Calculator to model your specific state and utility policy. Enter your export rate, consumption pattern, and system size to see exactly how much of your solar value is captured versus exported at reduced credit — and whether a battery changes that calculation.