How much does the electric company pay for solar power?

The electric company may pay you between USD0.15 per kilowatt to USD0.08. This amount varies depending on factors such as your system’s size, the number of people selling the energy, and where you live.  

Solar energy has been ranked as one of the cheapest sources of energy. Investing in solar panels saves you money that you would spend on ever-increasing energy bills. Apart from this, you can make money by selling the surplus energy to the national grid through the electric company.

The government has set up a plan through which electric companies pay solar power producers for every unit of power they feed into the national grid. Read on to find out how you can get paid by the electric company when your solar power consumption is less than your production.

How can you get paid for solar power generation? 

How can you get paid for solar power generation? / Treehugger

There are various ways that you can get paid for the generation of solar power:

Net Metering

When your solar panels generate more power than your consumption, you can sell the surplus to an electric company. The electric company puts that power back into the grid and gives you credits. These credits offset any electricity you may use from the grid. The credits are issued at a retail rate.

Net billing

This model allows you to use the power generated by your solar panels and then sell the surplus to an electric company. The surplus is sold at retail price. Unlike the net metering model, you cannot accumulate credits in net billing, which makes it a suitable method for commercial production rather than residential.

Buy all – sell all

This operation model requires you to sell all the energy produced by your solar panels to an eclectic company. On the other hand, all your electricity supply is provided by this company. The energy you sell to the electricity company is sold at a wholesale price, whereas the energy supply you get from the company is at a retail price.


Although kilowatt-hour prices differ from state to state, selling surplus solar power to the electric company does not help the producer financially. It helps boost an entire grid, creating security by freeing it from overload, thus making it less vulnerable to blackouts.

This table shows retail prices in 10 states in the US as tabulated by Energy Information Administration.

State Average retail price (cents/kWh)
Alabama 10.18
California 19.65
Florida 10.67
Idaho 8.17
Kansas 10.47
Mississippi 9.50
Nevada 8.58
New Jersey 14.01
Texas 9.14
Washington 8.75


Can an electric company pay you for the production of solar energy? 

Yes, an electric company can pay you for solar energy generation if you use less energy than what you generate.

How can I get paid by the electric company for solar power generation?

You can be paid through net metering, net billing, or buy-all-sell.

  • Nichole Hutt

    Hi, I'm Nichole! 👋
    I always felt close to nature during my childhood. Preferring to spend my time alone playing with backyard animals at my family farm. 🐷
    In 1997, I attained my electrical engineering degree at the Oregon Institute Of Technology, graduating top of my class. Several years later, I qualified for my M.S. in Renewable Energy Engineering, also at OIT. 🎓

    Combining my love for nature and passion for engineering, I have worked for solar panel manufacturer's in my state, most notably as a PV solar engineer for Zamp Solar.

    I founded RenewableSystems to share my knowledge and expertise in the renewable energy field and help save this beautiful little planet of ours. ☀️🌎

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