Net metering has emerged as a significant incentive for businesses and homeowners looking to invest in renewable energy. By allowing energy producers to feed surplus electricity back into the grid, net metering helps offset utility costs while providing financial rebates from net metering programs. Various states and companies have successfully leveraged net metering to reduce electricity bills and promote clean energy.

California’s Evolving Net Metering Policies

California’s transition from Net Energy Metering (NEM) 2.0 to a new Net Billing Tariff (NBT) reflects an evolving approach to compensating solar customers. While the core concept remains the same—using solar energy onsite and exporting excess to the grid—the new policy adjusts how financial rebates from net metering are calculated. Instead of full retail credits, customers now receive compensation based on the value their energy provides to the grid, which fluctuates based on demand.

To maximize financial benefits, California solar users are encouraged to install battery storage, allowing them to use or export stored energy when demand (and compensation) is highest. Those who enroll before 2027 receive a temporary bonus in energy credits, further incentivizing solar adoption.

One of the most notable examples of net metering and utilities working together comes from Walmart’s solar installations in California. The retail giant recently completed rooftop and parking lot solar panel projects at seven store locations, contributing 6.5 megawatts (MW) of renewable energy. This initiative aligns with Walmart’s long-term goal of powering its global operations entirely with renewable energy by 2035.

Nevada’s Tiered Net Metering Structure

Nevada offers a structured approach to net metering that ensures fair compensation for excess energy while encouraging continued investment in solar power. The Nevada Public Utilities Commission (PUCN) implements a tiered system that determines how much customers receive for exported electricity:

• Tier 1: 95% of the retail rate
• Tier 2: 88% of the retail rate
• Tier 3: 81% of the retail rate
• Tier 4: 75% of the retail rate

Customers who install solar systems retain their assigned rate for 20 years, ensuring long-term financial rebates from net metering. Tesla’s Gigafactory in Nevada, which has been expanding its rooftop solar array, stands to benefit significantly from these policies. Though the project has faced delays, its completion would make it one of the largest rooftop solar installations globally, further illustrating the advantages of net metering.

Arizona’s Approach to Net Metering

Arizona takes a different approach, with the Arizona Corporation Commission (ACC) overseeing the state’s renewable energy policies. The state requires utilities to generate at least 15% of their energy from renewable sources by 2025. To ensure that non-solar customers are not burdened with extra costs, Arizona has implemented a Grid Access Charge (GAC), a small monthly fee of $2 to $3 for solar users.

Arizona State University (ASU) has capitalized on net metering to build one of the most extensive solar programs in higher education. With over 89 solar installations across multiple campuses, ASU generates approximately 23 MW of electricity, significantly reducing its reliance on non-renewable energy sources. The university’s solar projects provide shaded parking and seating while feeding surplus power back into the grid, benefiting from net metering and utilities’ credit structures.

The Future of Net Metering

Net metering continues to evolve as utilities and regulators work to balance sustainability with financial viability. Businesses and institutions that invest in solar energy benefit from reduced electricity costs, financial rebates, and a lower carbon footprint. For commercial enterprises, the ability to offset operational expenses through net metering makes solar power a valuable investment. As seen in California, Nevada, and Arizona, net metering remains a crucial tool in expanding renewable energy infrastructure and making solar energy more economically viable.