Yes, you can export surplus solar output, but for most homeowners that means bill credits through net metering rather than steady cash payments. Net metering or net billing is the most common compensation path, and the rules differ by utility and state. Wholesale cash sales are possible, but only through aggregator programs built on FERC Order No. 2222, and that route takes extra equipment and paperwork.
TL;DR:
- Net metering credits exports near retail rates, while net billing often pays less; at settlement, unused credits may roll over, earn avoided cost, or expire.
- Time of use export rates can reward late afternoon or evening power more than midday production, but compensation depends on the utility.
- Your utility must approve interconnection before your system exports; applications typically take 10 to 40 business days, and size caps can leave excess credits unusable.
- Batteries shift midday output to expensive evening use, while wholesale aggregator participation requires an RTO or ISO territory, telemetry, remote dispatch, and a contract.
Table of Contents
- How compensation works: net metering, net billing, and true-ups
- What the interconnection process actually involves
- Batteries, self-consumption, and the path to wholesale markets
- Our take: design for the property, not for "selling" power
- Prioritize resilience and realistic economics
- How we help you capture more value from your system
- FAQ
- Sources
How compensation works: net metering, net billing, and true-ups
When your solar panels produce more electricity than your home uses, that extra power flows back onto the grid. What you get in return depends on your utility's compensation structure, and the two terms you'll hear most are net metering and net billing.
Net metering credits you at or near the retail rate, the same price you'd pay to buy that electricity. Net billing, used by a growing number of utilities, credits exported power at a lower rate, often tied to the utility's avoided cost or a separate export tariff. The DOE and NREL guidance on grid-tied solar walks through how these bidirectional metering arrangements actually get set up at the meter.
Time-of-use rates add another layer. If your utility charges more for electricity during late afternoon and evening peak hours, exporting during those windows can be worth more than exporting at midday, when solar output is highest but demand (and price) is often lower. This mismatch is part of why some utilities have scaled back full retail net metering in favor of time-based export rates.
At the end of a billing cycle or program year, unused credits get handled one of three ways:
- Credits roll over to the next period, sometimes indefinitely.
- Surplus is paid out at the utility's avoided-cost rate, usually far below retail.
- Unused credits are forfeited at the annual true-up.
Net metering programs exist in more than 35 states and Washington, D.C., though the specific rules, caps, and true-up treatment vary widely by jurisdiction according to DOE's policy analysis on net energy metering. For most residential systems, the realistic outcome is a lower electric bill, not a check in the mail.
What the interconnection process actually involves
Before any export happens, your system has to clear your utility's interconnection process. It's an administrative and technical review, and skipping steps can delay activation by weeks.
- Contact your utility to confirm its interconnection application and net metering or net billing program.
- Submit your application, typically filed by your installer, with system specs and site details.
- Pass a safety review, which checks for anti-islanding protection and compliance with inverter standards.
- Sign an interconnection agreement that spells out metering, export limits, and liability terms.
- Receive permission to operate, after which your system can legally export to the grid.
Metering setup matters here too. Some utilities install a single bidirectional meter that tracks net flow in both directions. Others require a two-meter configuration, one for consumption and one for production, which is more common with net billing programs. Utilities generally cover the meter swap, though some bill a connection fee.
Review timelines vary, but most applications clear in roughly 10 to 40 business days depending on your state and the complexity of the required studies. Larger systems, or those near a utility's circuit capacity, sometimes trigger additional engineering review and added equipment requirements.
Pro Tip: Ask your utility about system-size caps tied to your annual usage before you finalize your system design, since oversizing beyond that cap often produces export credits you can never use.
For a closer look at the paperwork itself, see our breakdown of the interconnection process.
Batteries, self-consumption, and the path to wholesale markets
When export credits shrink, which has been happening as more utilities shift from full retail net metering to lower export rates, storage becomes the better lever. A battery lets you shift solar production to the evening peak, when electricity is more expensive to buy, instead of selling it back cheap at midday. That shift, paired with smart load controls, often produces more reliable savings than exporting ever could, especially in territories with low avoided-cost rates.
For homeowners who want to go further and participate in wholesale markets directly, the pathway runs through DER aggregators. FERC Order No. 2222 requires regional transmission organizations and independent system operators to let aggregated distributed energy resources bid into wholesale energy, capacity, and ancillary service markets. In practice, that means a third-party aggregator bundles your battery or solar output with other small systems and bids the combined capacity into the market on your behalf.
A few things to know before pursuing that route:
- Order No. 2222 applies in RTO and ISO territories, and the rules don't extend the same way into ERCOT.
- Aggregators typically require telemetry and remote dispatch capability, meaning your system needs to report performance and respond to signals in near real time.
- Contracts with aggregators spell out revenue sharing, response obligations, and sometimes participation fees.
If your utility territory sits inside an RTO or ISO and you already have export credits losing value, storage with aggregator-ready controls is usually the stronger long-term move than counting on net metering alone. Our post on keeping solar profitable without full net metering covers this tradeoff in more detail.
Our take: design for the property, not for "selling" power
We design every system around what your property actually uses, not around maximizing kilowatt-hours pushed onto the grid. A system sized to chase export credits often ends up oversized relative to your utility's caps, producing surplus you can't monetize at a reasonable rate.
Our approach starts with load analysis and site conditions, then layers in battery storage and smart controls so your home captures value through self-consumption and export management first and export second. When goals include aggregator participation, systems are designed with the telemetry and remote dispatch capabilities that aggregators require from the start, rather than retrofitting them later.
A few questions worth asking any installer or your utility before you commit to a system:
- What's the system-size cap tied to my annual usage, and what happens to surplus above it?
- Does my utility use net metering, net billing, or a time-of-use export rate?
- What metering hardware does the interconnection agreement require, and who pays for it?
- If I want aggregator eligibility later, what telemetry does the system need now?
Pro Tip: Ask for a load analysis before sizing panels or batteries, since sizing around actual consumption patterns, not theoretical maximum output, is what protects your return on investment.
Beyond the financial side, a properly integrated system does double duty as backup power during outages, which matters more to most homeowners day to day than marginal export revenue. You can read more about how we approach battery storage design for self-consumption and backup.
Prioritize resilience and realistic economics
If you're weighing whether to chase export revenue, we'd steer you toward getting the sizing and storage right first. Read your interconnection agreement closely, confirm the export and telemetry terms directly with your utility, and don't assume every state treats surplus the same way.
If wholesale participation through an aggregator is the goal, plan for the telemetry and contract requirements early rather than bolting them on after installation.
— Prime Microgrid
How we help you capture more value from your system
Getting the economics right starts with a system built around your actual usage, not a generic package. Services can include custom system design, battery retrofit, telemetry and controls, and interconnection support to help prepare for various export or aggregator paths.
- Custom system design based on site conditions and load analysis.
- Battery retrofit for homes that already have solar but want better self-consumption.
- Telemetry and smart controls built in for aggregator eligibility when that's a goal.
- Interconnection support to help you move through utility paperwork without delays.
If you want a system engineered around your property instead of a one-size-fits-all install, explore our systems or reach out to request a consultation.
FAQ
How much money can you make selling power back to the grid?
Most homeowners don't receive direct cash; instead, exported electricity earns bill credits through net metering or net billing, which lower your monthly bill rather than generate income. The actual value depends on your utility's crediting rate and whether credits are set at retail or avoided-cost levels, so outcomes vary significantly by location.
How much do you get for selling back to the grid?
Compensation ranges from full retail-rate credit under traditional net metering to a much lower avoided-cost rate under net billing programs, and the DOE's net metering policy analysis confirms these designs vary by state and utility. There's no single national rate, so check your utility's specific tariff before estimating savings.
What states allow homeowners to sell electricity back to the grid?
Net metering or net billing programs exist in most U.S. states and Washington, D.C., though program design, caps, and true-up rules differ by state and utility. Checking your specific utility's tariff is the only reliable way to confirm your eligibility and compensation structure.
Do I need special equipment to export power safely?
Yes, your inverter needs anti-islanding protection and must meet your utility's interconnection standards, and your system typically needs a bidirectional meter or a second production meter. The DOE/NREL interconnection guidance outlines these technical requirements in detail.
Can I sell power directly to the wholesale market instead of my utility?
Direct wholesale sales aren't practical for individual homeowners, but FERC Order No. 2222 created a pathway for aggregators to bundle distributed resources like home batteries into wholesale market bids. This option requires telemetry equipment and an aggregator contract, and it's only available in RTO and ISO territories.
Sources
- FERC Order No. 2222 explainer: Facilitating participation in electricity markets by distributed energy resources
- Connecting Your Solar Electric System to the Utility Grid (DOE/NREL fact sheet)
- SEPA/NEM policy analysis (DOE/industry report)