Net Metering vs. Batteries: Which Is More Effective in 2025?
Homeowners investing in solar energy today face a critical financial decision: should you rely on net metering to manage your excess energy, or should you pair your solar panels with a battery system? The answer is not as simple as it once was. In 2025, with policy changes, evolving electricity rates, and federal incentives shifting the economic landscape, the right choice depends heavily on where you live, how your utility compensates solar energy, and what long-term value you’re looking to get from your investment.
What is Net Metering?
Net metering is a billing structure that allows you to send any excess electricity your solar panels produce back to the grid. In return, your utility provides credits on your electric bill. These credits can offset the cost of electricity you use when your panels aren’t producing power—typically at night or on cloudy days. There are three main forms of net metering in 2025:
| Type of Net Metering | How It Works | Financial Impact |
| Full-Retail Net Metering | Utilities give you full credit for each kilowatt-hour you send to the grid. | Most favorable for solar system owners |
| Time-of-Use (TOU) Net Metering | Credit value depends on the time of day the energy is exported. | Can be beneficial if your usage avoids peak times |
| Avoided-Cost Net Metering | Utilities pay a reduced rate for excess electricity, often near wholesale value. | Least favorable in terms of financial return |
What is Solar Battery Storage?
A solar battery stores the electricity your panels generate so you can use it later, or send excess energy back to the grid. Battery storage offers energy independence, protection during outages, and, in some cases, financial benefits if electricity prices vary during the day.
However, battery systems are expensive. In 2025, the cost of a residential battery system ranges from $1,100 to $1,300 per kilowatt-hour of capacity, before incentives. A typical 13.5 kWh battery system may cost over $15,000 installed. Fortunately, the 30% federal tax credit under the Residential Clean Energy Credit can reduce this by $4,500 or more.
Comparing Net Metering and Batteries: A kWh-by-kWh Approach
To understand the financial effectiveness of net metering versus batteries, it helps to compare how much value you receive for every kilowatt-hour (kWh) of excess solar energy your system generates.
Net Metering Value
- Full-retail: You receive 16 to 43 cents per kWh, depending on local retail electricity rates.
- Time-of-use: You might receive 8 to 15 cents per kWh for midday solar exports, but could pay 25 to 35 cents for electricity in the evening.
- Avoided-cost: Your exports may only be worth 3 to 10 cents per kWh, even if retail electricity costs 15 to 40 cents per kWh.
Battery Storage Value
Stored electricity allows you to avoid buying power from the grid. So every kilowatt-hour you use from your battery saves you the full retail cost of electricity. This value ranges from 15 to 40 cents per kWh, depending on your utility rate.
In other words, while net metering lets you “sell” power to the grid, battery storage allows you to use your own power when electricity is most expensive.
Realistic Financial Scenarios
Let’s consider three scenarios based on the type of net metering your state might offer. In each case, we’ll assume your solar system generates 50 kWh of excess electricity per month.
Full-Retail Net Metering
If your utility credits you at the full retail rate (for example, 16 cents per kWh), sending 50 kWh to the grid earns you a $8 credit. If you store that energy in a battery and use it later, you also save $8.
In this case, there is no additional savings from installing a battery. However, batteries still add to your upfront costs. A basic solar system may cost $18,000 and pay itself off in 8 to 10 years. Adding a battery could raise the total system cost to $28,000 and stretch the payback period to 13 or more years.
Conclusion: In states with full-retail net metering, batteries do not improve financial outcomes unless you value backup power or energy independence.
Time-of-Use Net Metering
Many states have adopted TOU net metering, especially in high solar penetration regions like California. Here, electricity exported to the grid at midday may be worth just 10 to 12 cents per kWh, while power you consume during evening peaks might cost 30 cents or more.
Selling 50 kWh during off-peak hours earns you about $6. But using stored electricity during peak hours saves you up to $15. That’s a difference of $9 each month, or about $108 per year.
While this doesn’t sound like a huge amount, it begins to close the economic gap between solar-only and solar-plus-storage systems, especially when paired with other benefits like resiliency.
Conclusion: Batteries can be financially justified under TOU policies, especially if your peak energy usage occurs in the evening.
Avoided-Cost Net Metering
This is the least favorable net metering structure for solar-only systems. Utilities might only pay 3 to 6 cents per kWh for your solar exports, even though retail electricity costs 15 to 30 cents per kWh.
Sending 50 kWh to the grid earns you just $2.50. Storing that electricity and using it later could save you up to $12.50.
Here, the battery creates a much larger difference in value. Even with the higher cost of battery systems, this difference helps shorten the payback gap.
Conclusion: In avoided-cost states, batteries offer a clear financial advantage, particularly if you use most of your electricity after sunset.
Other Considerations: Backup Power and Energy Autonomy
While financials are important, they’re not the only factor. Batteries bring other significant benefits:
- Outage protection: During grid failures, net-metered solar systems often shut down automatically for safety. Batteries keep your essential loads running.
- Energy independence: Batteries reduce reliance on changing utility policies, net metering cuts, and electricity price hikes.
- Environmental impact: Using your own solar energy directly reduces the need to pull electricity from fossil-fueled grid sources.
These factors often weigh heavily for homeowners in areas prone to wildfires, storms, or power instability.
Policy Trends: Why the Timing Matters
Federal and state policy is reshaping the solar market in real time. California, a leader in rooftop solar, replaced its full-retail net metering policy in 2023 with a net billing structure that slashed compensation rates for exported electricity. Other states, including Arizona and Nevada, have taken similar steps.
At the same time, the 30% federal tax credit for solar and storage is under political pressure. While it’s currently set to last through 2032, proposed legislation may begin phasing it out as early as 2026, with a full sunset before 2028. This makes 2025 a critical year for homeowners hoping to maximize their return.
When Is Each Option Better?
- If your state offers full-retail net metering, solar panels without a battery provide the best return on investment.
- If your utility uses TOU pricing, a battery can boost your savings by shifting usage away from peak rates.
- If your solar exports are only compensated at avoided-cost rates, a battery system offers far greater value than net metering alone.
- If you live in an area prone to outages, a battery provides essential resilience even if it lengthens your financial payback period.
If you decide that a solar battery system is the right investment for your home, don’t overlook EcoFlow OceanPro.
It’s one of the few systems built for full-home backup, with up to 80kWh of storage, 24kW continuous output, and advanced safety features. Whether you’re trying to beat TOU rates, protect your home from outages, or take control of your energy use, OceanPro offers the power, flexibility, and durability that large homes need—with faster setup and smarter control than most traditional systems.
When the goal is long-term value and energy freedom, EcoFlow is the name to trust.