Net Metering After the Policy Changes: How Export Rates Reshape System Economics
When export credit drops below retail rate, the value of a kWh shifts from the grid to the site. That changes the optimal system - and the equipment that makes it work.
Under full retail net metering, every exported kWh is worth the retail rate, so the best system is the one that produces the most kWh. When export compensation falls to avoided-cost levels, exported energy is worth far less than self-consumed energy - and the design objective changes from maximising production to maximising coincidence with site load.
| Design lever | Retail net metering | Low export credit |
|---|---|---|
| Array orientation | South for maximum annual kWh | West/east splits to shift production into evening load |
| System size | As large as the service allows | Sized to daytime load, not to roof area |
| Battery value | Optional backup | Captures midday production for evening use - often the core of the economics |
| Export limiting | Not needed | Frequently required by the interconnection agreement |
| Load electrification | Neutral | Strongly positive - more on-site consumption of self-generated kWh |
Storage moves from optional to central, and the inverter has to support the control behaviour the interconnection requires: export limiting, time-of-use dispatch and backup transfer. That generally pushes designs toward hybrid inverters and batteries sized for evening load rather than for whole-home outage duration.
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1
Profile the site load first
An hourly load profile tells you how much production can be self-consumed before storage is needed.
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2
Shift production into the evening
West-facing arrays produce later; combined with storage they displace more retail-priced import.
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3
Size storage to the evening load
Enough kWh to carry the evening peak, not the whole night - unless outage resilience is also a requirement.
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4
Confirm export controls in writing
Export limiting settings must be documented with the utility; losing them later can invalidate the interconnection.
Is solar still worth it with low export rates?
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