Solar Export Credit Value
A solar system that produces more power than a home uses at a given moment relies on export credit or net metering to make that excess worth anything. This isolates exactly what that arrangement is worth to your own economics.
At your inputs, your export credit has an NPV of -$12,911 over 10 years, with a discounted payback of no discounted payback within this horizon.
| Net cost after confirmed incentives | $16,000 |
|---|---|
| Annual savings | $400 |
| Net present value | -$12,911 |
Breakeven: No discounted payback occurs within the selected horizon.
- This uses planning estimates you entered, not a contractor quote or guaranteed savings.
- Export credit rates and structures vary by utility and program; confirm your specific terms.
What this also tells you: A positive NPV means the option is worth more than its cost even after discounting future savings back to today; a negative NPV means the upfront cost outweighs what the savings are worth today.
This is a planning estimate based on your entries. It does not size equipment, determine electrical or building-code compliance, verify incentive eligibility, or replace a contractor quote or professional energy audit.
Why this decision comes up
A solar quote rarely spells out in dollar terms exactly what the export credit or net metering arrangement is worth on its own, separate from the system's other savings.
How this is calculated
Net cost is compared against the annual savings gained specifically from your export credit, discounted over your ownership horizon, to produce an NPV and, if it occurs, a discounted payback year.
A worked example
With the defaults ($16,000 net cost, $1,100/year cost with no export credit, $700/year cost with your export credit applied, 10-year horizon, 5% discount rate), the export credit alone produces an NPV of about negative $12,911, meaning the credit's $400/year savings on its own does not clear this system's cost within the horizon, even though it materially helps the system's overall economics.
Common mistakes
A common mistake is assuming a strong export credit alone justifies the entire system cost, when it is really one contributor among several to the full investment case.
Limitations
Export credit rates and structures vary widely by utility and program, and some have changed over time. Confirm your specific terms before relying on today's rate long-term.
Common questions
What if my utility doesn't offer export credit at all?
Then excess production is effectively wasted, which is exactly the baseline scenario this tool compares against. Confirm your utility's specific program before assuming any credit applies.
Are all export credit programs the same value?
No, full retail net metering, credited at your full electricity rate, is far more valuable than a wholesale export rate, often a fraction of that rate. Confirm which structure your utility uses.
Could my export credit rate change after I install solar?
Yes, some utilities have changed export compensation structures for existing solar customers. Check whether your program includes a rate lock before relying on today's terms long-term.
Does this apply if I have a battery storing excess production instead of exporting it?
This tool isolates the export-credit value specifically, assuming excess is actually exported. If a battery captures that excess instead, see the battery-with-solar-value tool for that different economic case.
Is export credit the same thing as net metering?
Net metering is one specific, usually more favorable form of export credit; other utilities use less favorable structures like wholesale buyback. Confirm which applies to you before assuming full retail-rate credit.