What Types of Electric Meters Are Used with Solar Panels?
Quick answer: Most solar homes use a bidirectional (net) meter that records power coming from the grid and power sent back to it. Some utilities also add a production meter to measure everything your panels generate. Your utility handles the meter swap when it approves your system.
When you add solar, your utility needs to measure power flowing in both directions: what you pull from the grid and what your panels send back. That usually means a meter swap, which the utility handles as part of connecting your system. Here’s what the different meters and billing arrangements mean.
The meters you might have
Standard one-way meter
Older meters only measure electricity flowing into your home. On their own, they can’t track exports properly, so they’re replaced when you go solar.
Bidirectional (net) meter
This is the most common meter for solar homes. It sits where the grid connects to your house and records two numbers: electricity delivered to you from the grid and electricity your home sends back to the grid. It doesn’t measure everything your panels produce, because much of that power gets used in your home before it ever reaches the meter.
Production meter
Some utilities and incentive programs require a separate meter that records the total output of your solar system. It’s used when you’re paid for every kWh your system generates, for example in some state renewable energy certificate programs. Your inverter or monitoring app also tracks production, but those readings usually aren’t used for billing.
Smart meters
Most US utilities have installed digital “smart” meters that record usage in short intervals and send readings automatically. Many are bidirectional already, so going solar may only need a settings change rather than new hardware.
Time-of-use rates
Time-of-use isn’t a meter you buy. It’s a rate plan where electricity costs more at certain hours, often late afternoon and evening, and less at others. A smart meter records when you use and export power so the utility can bill you under that plan. Solar exports at midday may be worth less under time-of-use than evening usage costs, which is one reason batteries have become more popular in places like California.
How utilities bill solar homes
Net metering
Exports earn credits at the full retail rate. Credits built up in sunny months can offset bills in darker months, and many utilities settle up once a year. This is the most favorable arrangement for solar owners.
Net billing
You pay retail for what you buy, but exports earn a lower rate, often based on the utility’s avoided cost of power. California’s Net Billing Tariff, which applies to systems that applied to connect on or after April 15, 2023, cut export credits by roughly 75% compared with the old net metering rules.
Buy-all/sell-all
A few utilities buy all of your solar output at a set rate while you buy all of your electricity at the normal rate. This usually requires separate metering.
Which one you get depends on your state and utility. Net metering is set at the state level, and many states have moved new customers to net billing or other successor programs in recent years. Our articles on making money with solar and how much solar saves show how these rules change the math.
Who handles the meter?
The utility owns the meter. As part of your interconnection application, it will install or reprogram a meter if needed, then give you permission to operate. There may be a one-time fee depending on your utility. Don’t switch the system on until you have that permission. See solar approvals and permits.
Reading your bill after going solar
Your bill will typically show energy delivered from the grid, energy received from you, and any credits carried forward. Compare those numbers with your monitoring app. If your panels produced plenty but your bill shows no exports or credits, call the utility to confirm the meter was set up correctly.
