Net Metering vs. Buy-All/Sell-All Solar Compensation
Some utilities offer a genuine choice between compensation structures, or you may be comparing two different utility territories. Net metering credits exports at or near retail rate; buy-all/sell-all sells all your production and buys back all your usage separately, often at different rates.
At your inputs, net metering costs $3,000 less over 10 years.
| Net metering (credited at retail rate for exports) total cost over the horizon | $25,000 |
|---|---|
| Buy-all/sell-all (all production sold, all use purchased separately) total cost over the horizon | $28,000 |
Breakeven: net metering has both the lower upfront cost and the lower annual cost, so there is no upfront tradeoff to offset.
- This uses planning estimates you entered, not a contractor quote or guaranteed savings.
- A lower calculated cost depends on your utility's actual compensation structure, which you should confirm directly.
What this also tells you: Even if your annual costs are 20% higher or lower than entered, the same option stays cheaper, with the advantage ranging from $2,400 to $3,600.
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 shopper evaluating a program or considering a utility territory choice benefits from seeing the real cost difference between these two compensation structures directly.
How this is calculated
Both paths are compared as total cost over your ownership horizon: net cost plus annual cost carried forward.
A worked example
With the defaults (net metering: $18,000 net cost, $700/year; buy-all/sell-all: $18,000 net cost, $1,000/year; 10-year horizon), net metering totals $25,000 against $28,000 for buy-all/sell-all, a $3,000 advantage for net metering at these defaults, reflecting the typically less favorable economics of separately priced buy and sell rates.
Common mistakes
A common mistake is assuming all solar compensation structures are equivalent as long as the "rate" sounds similar. The structure itself, not just the headline rate, materially affects total cost.
Limitations
This does not determine which structure applies to your specific utility or program. Confirm that directly before relying on this comparison.
Common questions
Why would buy-all/sell-all ever be offered instead of net metering?
Some utilities and programs use buy-all/sell-all structures for billing or grid-management reasons unrelated to homeowner preference. Where a genuine choice exists, this comparison helps you evaluate it.
Which structure is more common?
Net metering remains more common overall in the U.S. as of recent years, though this varies by state and is subject to ongoing policy changes. Confirm what applies in your specific territory.
Does my own usage pattern affect which structure is better?
Yes, a household that uses more of its solar production directly (rather than exporting it) is less affected by the compensation structure than one that exports a large share.
Can utilities change my compensation structure after I install solar?
Some jurisdictions grandfather existing customers under the rules in place when they enrolled, while others apply changes going forward. Check your specific state's and utility's grandfathering policy before assuming your terms are locked in.
Does a battery reduce the disadvantage of buy-all/sell-all?
Yes, storing production for your own later use instead of selling it at a potentially unfavorable rate can reduce how much the compensation structure matters. See the battery-with-solar-value tool for that comparison.