Does my utility company affect solar savings?

Yes significantly. Utility rates, net metering policies, demand charges, and interconnection fees all affect your solar savings and payback period. High-rate utilities like SDGE and ConEd make solar much more attractive than low-rate utilities like TVA.

What is net metering and how does it work?

Net metering credits you for excess solar energy your panels send back to the grid. When your panels produce more than you use, the excess flows to the grid and you receive a credit on your bill. Rates and policies vary dramatically by utility — some pay retail rate, others pay much less.

Which utilities are best for solar customers?

Utilities with high electricity rates and strong net metering make solar most valuable. California utilities (SCE, SDGE, PG&E), New York utilities (ConEd, National Grid), and New England utilities offer the best solar economics. Texas deregulated areas and Southeast utilities typically offer less favorable terms.

What are demand charges and do they affect solar?

Demand charges bill you based on your peak power usage in a month, not just total consumption. SRP (Arizona), some commercial utilities, and a few residential utilities use demand charges. Solar alone doesn't reduce demand charges well — battery storage is often needed to manage demand peaks.

How do I find out my utility's net metering policy?

Check your utility's website under 'solar' or 'distributed generation,' or ask your installer. Key things to look for: whether they credit you at retail or wholesale rates, any capacity limits, and interconnection fees. Our utility guides cover major utilities in detail.

Solar by Utility Company | Net Metering & Rates by Provider

Why Your Utility Matters More Than Your State

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From my experience:Every utility has different rules. I always tell homeowners to check their specific utility's net metering policy before getting quotes. Two neighbors on the same street can have totally different solar economics if one has a utility with great net metering and the other doesn't.

Two neighbors in the same state can have completely different solar economics if they have different utilities. Your utility determines:

Net metering rate - What you get paid for excess solar (ranges from $0.03 to $0.35/kWh)
Interconnection timeline - How long until you can turn on (1 week to 6 months)
Rate structure - Flat rates, tiered, or time-of-use
Additional fees - Some utilities charge solar customers extra fees
System size limits - Maximum size you can install

The Utility Difference

In Arizona, APS customers get ~$0.10/kWh for excess solar. SRP customers (same state) get as little as $0.03/kWh. That's a $1,500/year difference on the same system. (Source: EnergySage Marketplace Data, 2025)

Find Your Utility Guide

Major Utilities (Click for Full Guide)

Utility	States Served	Net Metering	Solar Rating
Duke Energy	NC, SC, FL, IN, OH, KY	Varies by state	⭐⭐⭐ Good
PG&E (California)	Northern CA	NEM 3.0 (complex)	⭐⭐ Challenging
SCE (SoCal Edison)	Southern CA	NEM 3.0 (complex)	⭐⭐ Challenging
Florida Power & Light	Florida	Full retail (for now)	⭐⭐⭐⭐ Great
APS (Arizona)	Arizona	Export rate ~$0.10/kWh	⭐⭐⭐ Good
SRP (Salt River Project)	Arizona (Phoenix area)	Demand charges	⭐ Difficult
Xcel Energy	CO, MN, TX, NM, WI	Varies by state	⭐⭐⭐ Good
Con Edison	New York City area	VDER (value stack)	⭐⭐⭐ Good
National Grid	MA, NY, RI	Full retail	⭐⭐⭐⭐ Great
ComEd	Illinois	Full retail + SRECs	⭐⭐⭐⭐⭐ Excellent

Net Metering Basics

Net metering is how utilities credit you for excess solar energy you send to the grid. There are three main types:

1. Full Retail Net Metering (Best)

You get credited at the full retail rate for every kWh you export. If you pay $0.15/kWh, you get $0.15 credit for exports. This is becoming rare.

Utilities with full retail: National Grid, ComEd, most Florida utilities (for now)

2. Net Billing / Export Rate (Common)

You get a lower "export rate" for excess power—often the wholesale rate ($0.03-$0.08/kWh) or a set export rate ($0.08-$0.12/kWh).

Utilities with export rates: APS, California utilities (NEM 3.0), many others

3. Time-of-Use Net Metering (Complex)

Credits vary by time of day. Export during peak hours (4-9 PM) = higher credit. Export midday = lower credit. Batteries help optimize this.

Utilities with TOU: PG&E, SCE, SDG&E, some Arizona utilities

Net Metering Trend

Net metering is getting worse nationwide. If your utility still offers full retail net metering, going solar sooner locks in better rates. Many utilities grandfather existing solar customers when policies change. (Source: utility tariff filings and DSIRE Database)

[Editor's Note, Jan 2026]:Utility rates and policies change frequently. Verify current rates with your utility before making decisions.

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Written by

Lincoln Panasy

Founder, SolarQuest AI • Solar Expert Since 2018

Lincoln created SolarQuest AI after seeing too many homeowners get burned by pushy solar salespeople. With 8 years of experience in the solar industry since 2018, he writes and reviews all content on this site—combining his real-world expertise with AI tools to deliver accurate, unbiased solar education.

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