Awaiting expert review. This page covers rules that vary by utility and jurisdiction. It is kept out of search results until a qualified reviewer has checked it; the sources below are dated so you can verify each point.
Quick answer
Export Compensation is the credit or payment a utility gives for electricity a solar system sends to the grid, the excess generation the home does not use at that moment. It is set by the utility's tariff and is often called the buyback rate or export credit.
It ranges from full retail value under classic net metering down to the utility's avoided cost, and it is the single biggest policy input in a solar payback estimate.
Quick facts
The key facts about export compensation, with sources:
- Also called
- Buyback rate, export credit, net excess generation (NEG) credit
- Paid as
- Bill credit in kWh or dollars; sometimes an annual cash-out
- Federal floor and ceiling
- PURPA purchases: no utility must pay more than avoided cost (18 CFR §292.304) 9
- Duke Energy Carolinas (SC)
- $0.0419/kWh net excess, Rider RSC, from 1 Jan 2026 1
- Dominion Energy Virginia
- $0.05829/kWh annual net excess, new interconnections from about 1 May 2027 12
- Set by
- State commission, co-op board or municipal council
Key takeaways
- Export compensation is the price your utility puts on solar power you send to the grid.
- It can be the full retail rate, a lower set rate, or the utility’s avoided cost.
- Published South Carolina and Virginia export credits we checked run from about 2¢ to 6.5¢ per kWh.
- A kWh you use at home usually saves you far more than a kWh you export.
- The rate is set by your tariff and can change. Ask how long yours is fixed.
What export compensation covers
Your panels make the most power at midday. If your home is not using all of it, the rest flows out to the grid. That outflow is your export. Export compensation is what the utility gives you for it.
It can come as a kWh credit, a dollar credit, or a cash payment. The rules sit in your utility’s solar tariff, often called a rider. A rider is an add-on to your normal rate schedule that changes how certain parts of the bill work.
Net excess generation (NEG) is a related idea. It is the kWh you exported beyond what you imported over the netting period. On many tariffs, only the NEG earns the export rate. The rest is netted at retail.
From surplus to credit
- Panels → inverter → home loads take what they need
- Surplus → two-way meter records the export
- Tariff rule → nets, prices or banks the export
- Bill → credit or payment at the export rate
How a utility turns exports into money
The meter counts imports and exports. The tariff then decides two things. First, how much of the export is netted against imports. Second, what price the rest earns.
The netting step can be monthly, hourly, or within each time-of-use period. Duke Energy Carolinas’ Rider RSC in South Carolina nets inside each time-of-use period each month. Only the excess then earns $0.0419 per kWh 1. Santee Cooper nets each hour under Rider DG-25 3.
Shorter netting windows mean more of your solar counts as export. That lowers its value when the export rate is below retail.
Four ways utilities pay for exports
| Method | Export kWh is worth | Where you see it |
|---|---|---|
| Retail net metering | The retail energy price, until imports are used up | Legacy and many state programmes; see net metering |
| Time-period netting | Retail within the same time-of-use period; a set rate for the excess | South Carolina Solar Choice tariffs |
| Net billing | A fixed export rate from the first kWh | Many co-ops and municipals; see net billing |
| Avoided cost | What the utility would otherwise pay to generate or buy the power | Annual cash-outs; PURPA purchases; see avoided cost |
Published export credits, South Carolina and Virginia
| Utility | Export credit | Rule |
|---|---|---|
| Duke Energy Carolinas (SC) | $0.0419/kWh 1 | Net excess after netting within each time-of-use period, monthly |
| Dominion Energy SC | Avoided cost at November cash-out 2 | Surplus banks forward; cashed out yearly |
| Santee Cooper | $0.0415/kWh 3 | Hourly netting; $50+ monthly credit paid by check |
| Berkeley Electric Cooperative | $0.0603/kWh 4 | Renewable Surplus Rider; updated around 1 March each year |
| Palmetto Electric Cooperative | $0.04662/kWh, 2026–27 5 | Dollar credit rolls over monthly |
| Greer CPW | 6.54¢ on-peak · 4.251¢ off-peak 6 | Credits carry 12 months; unused paid at year end |
| City of Rock Hill (via PMPA) | $0.03874 on-peak · $0.02168 off-peak 7 | Rates from 1 Jan 2021, called minimums |
| Dominion Energy Virginia (NEM 2.0) | $0.05829/kWh annual net excess 12 | Annual kWh netting kept; from about 1 May 2027 for new interconnections |
Example: what 1,000 kWh of surplus a year earns
Same surplus, three tariffs from the table above, assuming all 1,000 kWh end up as net excess.
| Tariff | Math | Annual credit |
|---|---|---|
| Duke Energy Carolinas Rider RSC | 1,000 × $0.0419 | $41.90 |
| Berkeley Electric | 1,000 × $0.0603 | $60.30 |
| Dominion Energy Virginia NEM 2.0 | 1,000 × $0.05829 | $58.29 |
Used in the house instead, each of those kWh would avoid a retail energy charge instead: on Duke Energy Carolinas Schedule RS that is $0.138125 for the first 1,000 kWh, more than three times the $0.0419 export credit 8.
That ratio is why sizing a system to your own use, or adding a battery, usually beats oversizing for export.
Where the export rate shows up
- The solar rider or tariff PDF on your utility’s rates page. Look for “excess,” “surplus,” “export” or “buyback.”
- Your proposal. The savings model should list the export rate it used. If it lists none, ask.
- Your bill. Lines such as “net excess credit,” “surplus energy credit” or “value of renewable generation.”
- A yearly statement or check, where the tariff pays out leftover credit.
Benefits and limits of export compensation
What it does for you
- Turns spare midday power into bill credit instead of waste.
- Lets a system sized to your year cover cloudy days and nights on paper.
- Gives a clear number to compare tariffs and battery choices.
Where it falls short
- Usually worth much less than retail power on new tariffs.
- Can be reset by the utility, often yearly on co-op tariffs.
- Short netting windows turn more of your solar into low-value exports.
Why export rates are usually below retail
The retail rate pays for more than energy. It also covers poles, wires, meters, billing and staff. An exported kWh replaces only some of those costs, utilities argue. So many tariffs pay closer to what the utility saves on energy, called avoided cost.
Federal rules under PURPA support that view for small power producers. 18 CFR §292.304 says nothing in those rules requires a utility “to pay more than the avoided costs for purchases” 9. States can choose to pay more, as classic net metering does.
Sources: [9]
How the export rate drives payback
Export compensation does not change the installed price. That comes from equipment, labor and permits; see the cost by system size guide. What it changes is how much each kWh earns, and so how long the system takes to pay back.
The main drivers are the export rate, the share of your solar that is exported, the netting window and how long the rate is locked. A 10-year lock, such as Dominion Energy South Carolina’s Solar Choice term, gives more certainty than a yearly reset 2.
Plug your utility’s real export rate into the savings calculator. Do not accept a proposal that values all exports at retail unless your tariff truly does.
How to find your real export rate
- Find your utility on your bill. Note whether it is investor-owned, a co-op or city-owned.
- Open the utility’s rates page and find the solar or distributed generation rider.
- Read three things: the netting window, the export rate and how leftover credit is settled.
- Check the rider’s effective date and the order or board action behind it.
- Ask your installer to use those exact terms in the savings model.
- After permission to operate, check that your first bill matches.
How to get more value from each exported kWh
- Size the system to your annual use rather than the roof's maximum.
- Move flexible loads, such as EV charging or a pool pump, into solar hours.
- Compare storing against exporting with the round-trip efficiency of the battery in mind.
- Check whether your tariff locks the export rate for a term, and when it resets.
- Review the export line on each bill; a sudden drop can mean a fault, not a rate change.
Red flags about export credits
- A quote assumes every kWh is worth the retail rate on a tariff that pays less for exports.
- No one can name the rider your system will be on.
- A seller promises the export rate will never change.
- The system is far larger than your use, so most output earns the low rate.
Who sets export compensation
Federal: PURPA rules at 18 CFR Part 292 govern how utilities buy power from small “qualifying facilities.” They require standard purchase rates for facilities of 100 kW or less and cap required payments at avoided cost 9. Most home systems sell through state net metering or net billing tariffs instead.
South Carolina: Act 62 of 2019 (SC Code Title 58 Ch. 40) moved new customers of investor-owned utilities to Solar Choice tariffs from 1 June 2021 10. The Public Service Commission approves those tariffs. Santee Cooper, co-ops and city utilities set their own.
Virginia: Va. Code §56-594 sets the net metering frame for investor-owned utilities. The version in force today runs until 1 January 2027, when an amended version takes over with the same size limits 11. The SCC sets Dominion’s export credit in Case PUR-2025-00079 12.
Export compensation vs related terms
| Term | What it means | How it relates |
|---|---|---|
| Export compensation | Any credit or payment for exported power | The umbrella term |
| Net metering | Exports offset imports in kWh | Export worth retail until net excess |
| Net billing | Exports and imports priced separately | Export worth the set export rate |
| Avoided cost | Utility’s cost to make or buy the power instead | A common basis for the export rate |
| Electricity rate | Price you pay per kWh you buy | The yardstick to compare exports against |
Common misconceptions
- Myth The utility pays me the same price I pay it.
- Reality Only under classic retail net metering. Most new tariffs pay less for exports.
- Myth Exports are pure profit.
- Reality They are usually bill credits that cannot pay fixed charges.
- Myth Export rates are set by federal law.
- Reality Federal PURPA rules cap required payments at avoided cost; states and utility boards set the actual rates 9.
Where the rules come from in South Carolina, Virginia and Georgia
South Carolina: Act 62 of 2019 moved new customers of the investor-owned utilities to Solar Choice tariffs from 1 June 2021 10. Santee Cooper, the co-ops and municipal systems set their own rules.
Virginia: Dominion’s new export credit applies to new non-low-income interconnections from about 1 May 2027; existing customers are not moved 12. Georgia rates were not verified for this page; check Georgia Power or your EMC.
When export compensation matters to you
It matters most when a big share of your solar leaves the house. That happens if no one is home by day, or if the system is larger than your use.
Rule of thumb: divide your export rate by your retail energy rate. If the answer is well below one, value each extra panel by the export rate, not the retail rate. Then decide whether shifting loads or a battery is worth it.
Next step: find your rider and run the net billing calculator with its real export rate.
More guides
Questions about export compensation
What is a good solar buyback rate?
Full retail is the best case and is now rare for new customers. The published South Carolina and Virginia export rates on this page run from about 2¢ to 6.5¢ per kWh. Compare yours with your retail energy charge. The closer the two are, the more each exported kWh is worth to you.
Do utilities pay cash for excess solar?
Some do, usually once a year or above a threshold. Santee Cooper mails a check when the monthly net credit is $50 or more. Dominion Energy South Carolina cashes out banked surplus each November at avoided cost. Greer CPW pays unused credit at year end. Most others keep it as bill credit.
What is net excess generation?
Net excess generation is the kWh you exported beyond what you imported over the netting period. It is the part of your exports paid at the export rate rather than offset at retail. Under monthly netting, it is the surplus left at month end. Under annual netting, it is what is left at the true-up.
Can my export rate change after I install solar?
Yes, unless the tariff guarantees it. Some riders lock terms for a period, such as at least 10 years on Dominion Energy South Carolina's Solar Choice rider. Co-op rates are often reset yearly. Ask your utility which applies before you sign, and plan for a range of rates.
Why is my export credit lower than my electric rate?
Because most tariffs pay for the energy only, not the grid. Your retail rate also pays for wires, poles, meters and billing. Many utilities price exports near their avoided cost: what they would spend to make or buy the same power. Federal PURPA rules do not require them to pay more than that.
Is it better to export solar or store it in a battery?
Store it when your export rate is well below your retail rate and the battery’s yearly gain covers its cost. Every stored kWh loses some energy to round-trip losses. Export it when the export rate is close to retail. A battery also gives backup power, which has value beyond bill savings.
How do I find my utility’s export rate?
Look on your utility’s rates page for a solar, renewable or distributed generation rider. The rider names the export rate, the netting window and how leftover credit is settled. Co-ops often post the yearly rate on a net billing page. Your installer should also be able to name it.
Do I get export credit before permission to operate?
No. Credits start after the utility grants permission to operate and sets up the meter. Exporting power before then can breach the interconnection agreement. Plan your switch-on date around the utility’s approval, not the installer’s finish date.
Sources
- Duke Energy Carolinas (SC), Rider RSC Residential Solar Choice (effective 1 January 2026), retrieved .
- Dominion Energy South Carolina, Residential Solar Choice rider (PSC Order No. 2026-374), retrieved .
- Santee Cooper, Distributed Generation Rider DG-25, retrieved .
- Berkeley Electric Cooperative, Renewable Surplus Rider, retrieved .
- Palmetto Electric Cooperative, net billing rider and credit rates, retrieved .
- Greer CPW, Residential Renewables rate code 750 (Feb 2026), retrieved .
- City of Rock Hill, Tri-Party net billing agreement with PMPA (rev. 17 Sep 2020; via Internet Archive), retrieved .
- Duke Energy Carolinas (SC), Schedule RS (Docket No. 2025-172-E), retrieved .
- 18 CFR §292.304, Rates for purchases (eCFR), retrieved .
- South Carolina Code Title 58 Ch. 40 (Act 62 of 2019), retrieved .
- Code of Virginia §56-594 (versions effective until and from 1 January 2027), retrieved .
- Virginia SCC, Order on Clarification, Case PUR-2025-00079 (20 May 2026), retrieved .
Expert review
Written by the HyreSolar Research team. Not yet reviewed by an outside expert. We say so rather than imply a review that has not happened; see our editorial policy.
How the numbers were checked: Every rate in the table is copied from the tariff or utility document cited beside it, as held in sc-local/facts.js (SC) and the VERIFIED rows of the Virginia fact pack.
The federal rule was read from 18 CFR §292.304 on eCFR on 8 October 2026. The example multiplies those rates only. Georgia was not verified. Held for qualified review before indexing (G-REV).
Suggest a correction. We fix errors and say what changed.