Solar Export Rate Impact
The rate you're credited for exported solar production varies enormously by utility and program, from close to retail rate down to a small fraction of it. This shows exactly how much that specific rate moves your system's NPV.
At your inputs, your solar system, at this export compensation rate has an NPV of -$14,911 over 10 years, with a discounted payback of no discounted payback within this horizon.
| Net cost after confirmed incentives | $18,000 |
|---|---|
| Annual savings | $400 |
| Net present value | -$14,911 |
Breakeven: No discounted payback occurs within the selected horizon.
- This uses planning estimates you entered, not a contractor quote or guaranteed savings.
- Export compensation rules and rates 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
Solar shoppers often get a payback estimate based on an assumed export rate that may not match their actual utility's program, and this shows how much that specific assumption matters.
How this is calculated
This discounts the annual cost difference between a low and a higher export compensation rate back to today's dollars over your ownership horizon, netted against the system cost, to produce an NPV.
A worked example
With the defaults ($18,000 system cost, $1,100/year at a low export rate dropping to $700/year at a more favorable rate), the annual savings is $400 and the NPV comes out negative at about $14,911, even at the more favorable rate, at these particular defaults, underscoring how much the specific export rate and your other system economics both matter together.
Common mistakes
A common mistake is assuming a favorable export rate you saw quoted for a different utility or program applies to your own situation. Confirm your actual utility's rate directly.
Limitations
This does not verify your specific utility's current export compensation structure. See the net metering vs. buy-all/sell-all tool for how the structure itself, not just the rate, affects the economics.
Common questions
Why does export rate vary so much between utilities?
It depends on state policy and your specific utility's compensation program, ranging from full retail-rate net metering to much lower wholesale-rate buyback structures.
How do I find my actual export rate?
Check your utility's solar interconnection or net metering program documentation, or ask directly before finalizing a solar decision based on assumed compensation.
Does a battery reduce my dependence on the export rate?
Yes, storing excess production for your own later use instead of exporting it reduces how much this specific rate matters. See the battery-with-solar-value tool for that comparison.
Can my export rate change after I install solar?
It depends on your program's grandfathering policy; some lock in your rate for a set period or your system's life, while others apply new rates to existing customers. Confirm this before finalizing a decision based on today's rate.
Does time-of-day export pricing exist, where the credit rate itself varies by hour?
Some newer program designs do vary the export credit by time of day. If yours does, use a realistic blended average across when your system actually exports, typically midday, rather than a single flat figure.