Federal solar credit ended Dec 31, 2025
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Why Your Utility's Export Rate Now Decides Solar Payback

Updated Data verified Nov 5, 2026

Two homes with identical roofs and identical systems can see very different savings, because utilities pay very different amounts for the solar power you send to the grid. With the federal homeowner credit gone, that export rate is now often the biggest single factor in solar payback.

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Three ways utilities credit exports

  • Net metering: exports offset what you buy at the full retail price. Florida's investor-owned utilities and New York's utilities work this way, as does LADWP in Los Angeles.
  • Net billing: exports earn a separate, lower rate. Arizona's APS currently locks new customers in at 5.55¢ per kWh[1]; TEP at 4.62¢ per kWh[2]; SRP pays 1.87¢ per kWh[3]. Sacramento's SMUD pays 9.60¢ per kWh[4].
  • Retail choice: in Houston and Dallas, your retail electricity plan decides whether you are paid for exports at all.

What a low export rate changes

Under net billing, energy you use as it is produced is worth your full retail price, while exported energy earns a fraction of it. That means:

  1. Size to your daytime use, not to your yearly total.
  2. Move flexible loads into sunny hours: laundry, dishwashers, pool pumps, EV charging and pre-cooling.
  3. Consider a battery where evening prices are high or exports earn little.

Under net metering the opposite holds: the grid acts like a free battery, and sizing to your yearly use is usually best.

Check your own utility

Our net metering pages list each utility's current rules from its tariff, and the calculator uses your utility's export rate by default. When comparing installer quotes, ask which export rate and how much on-site use they assumed.

sources

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Every number on this page links to one of these sources. Dates show when we last checked each one.

  1. APS: Rate Rider RCP (Resource Comparison Proxy export rate)aps.com · checked Nov 5, 2026
  2. TEP: Rider R-14 Resource Comparison Proxy Export Rate (RCP-PRS)tep.com · checked Nov 5, 2026
  3. SRP: Per Exported kWh Credit on E-16 (Manage Demand 5-10 p.m. and Save) and E-28 (Conserve 6-9 p.m. and Save)srpnet.com · checked Nov 5, 2026
  4. SMUD: Solar and Storage Rate (SSR, Rate Schedule SSR; SMUD municipal, not subject to CPUC NEM 3.0)smud.org · checked Nov 5, 2026