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
Solar Buyback Rate A solar buyback rate is the price, in cents or dollars per kilowatt-hour, that a utility pays or credits for surplus electricity a customer’s solar system sends to the grid under a program where exports are bought rather than netted at the full retail price.
“Buyback” is everyday shorthand, not usually the tariff’s own word. On paper you will see names like energy credit, surplus credit, net excess rate or avoided cost credit. This page shows how that number is set and how to judge it.
Quick facts
The key facts about solar buyback rate, with sources:
- Unit
- ¢/kWh or $/kWh
- Federal ceiling for PURPA purchases
- Need not exceed the utility’s avoided cost 1
- Typical tariff names
- Energy credit, surplus rider credit, net excess rate, avoided cost credit
- Santee Cooper (SC) rule for its credit
- Adjusted at least once a year to its projected cost of energy 4
- Georgia Power basis
- Solar avoided energy cost adjusted by the Renewable Cost Benefit framework 3
- Quick test
- Buyback rate ÷ your retail price = share of retail value you get per exported kWh
Key takeaways
- A buyback rate is the price per kWh a utility pays for the solar you do not use yourself.
- Most buyback rates are built from avoided cost: what the utility saves by not making or buying that power.
- Who sets it varies: a state commission, a public power board, or a wholesale supplier for a city utility.
- The fair test is the ratio to your retail price. In South Carolina, published credits run from about one-sixth to about half of the average retail price.
- The buyback rate only applies to exports. Solar you use at home still saves the full retail price.
- Rates change, often each year. Check the current tariff, not a sales sheet.
What “buyback” means, and what it does not
Under classic net metering, an exported kWh simply cancels an imported one. Nothing is bought. A buyback rate is different. The utility treats your surplus as a purchase and pays a set price for it, usually far below what it charges you.
The word itself is mostly used by homeowners, installers and news reports. Utility tariffs tend to use their own labels. Santee Cooper calls its figure an “Energy Credit” in Rider DG-25 4.
Georgia Power describes compensation “for excess electrical energy delivered” under its Renewable and Nonrenewable Resources (RNR) tariff 3. We could not find the word “buyback” in the Georgia Power documents we read, so search the tariff for “excess”, “surplus” or “credit” instead.
For the full menu of ways utilities pay for exports, see export compensation. This page zooms in on the buyback price itself.
From utility costs to the number on your bill
- Utility forecasts its fuel and power-purchase costs → its avoided cost
- Regulator or board approves a method → adds or removes items such as line losses
- Tariff prints a rate per kWh → applied to each exported or net-excess kWh
- Credit appears on your bill → or is paid by check once it passes a set amount
How a buyback rate gets set
The federal floor and ceiling. The Public Utility Regulatory Policies Act (PURPA) of 1978 makes utilities buy power from small “qualifying facilities”.
FERC’s rule says the rate must be just and reasonable, must not discriminate against them, and need not exceed avoided cost 1.
It also says a QF selling “as available” is paid avoided cost at the time of delivery 1.
The state method. Each state fills in the formula. The Georgia Public Service Commission reviewed Georgia Power’s avoided cost method in Docket No. 4822.
By its 2 March 2021 order, it added reduced transmission and distribution losses from the Renewable Cost Benefit (RCB) framework to the formula 2.
That order also notes the RCB framework was applied to rooftop solar avoided costs by an agreement the Commission approved on 7 June 2017 2.
The public power method. Santee Cooper, South Carolina’s state-owned utility, sets its own rates through its board. Rider DG-25 says the energy credit is adjusted “at least annually to reflect changes in the Authority’s determination of its projected cost of energy” 4.
The wholesale supplier method. Some city utilities pass through a rate set by the agency that sells them power. Rock Hill, South Carolina, uses rates from the Piedmont Municipal Power Agency, which calls them minimums and can change them 5.
Types of buyback rate
| Type | How it works | Named example |
|---|---|---|
| Flat rate | One price for every exported kWh, any hour | Santee Cooper Rider DG-25 energy credit (SC) 4 |
| Time-of-use rate | A higher price in peak hours, a lower one off-peak | Rock Hill / PMPA on-peak and off-peak credits (SC) 5 |
| Annual true-up rate | Only the year’s leftover surplus is bought | Dominion Energy SC November cash-out at avoided cost (SC) 7 |
| Avoided cost plus an adder | Avoided cost with extra value items added | Georgia Power RNR, RCB-adjusted solar avoided energy cost (GA) 3 |
| Annual avoided cost credit | Converted to dollars, then used against your charges | Duke Energy Kentucky “Excess Generation Avoided Cost Credit Rate”, from 1 Jan 2025 (KY) 12 |
How buyback rates compare with retail, South Carolina
| Utility (tariff) | Buyback credit | Average retail price, 2024 | Credit as share of retail |
|---|---|---|---|
| Santee Cooper (Rider DG-25) | 4.15¢ 4 | 11.38¢ | About 36% |
| Duke Energy Carolinas SC (Rider RSC) | 4.19¢ 6 | 13.99¢ | About 30% |
| Berkeley Electric Co-op (Renewable Surplus Rider) | 6.03¢ 8 | 14.93¢ | About 40% |
| Palmetto Electric Co-op (net billing, 2026–27) | 4.662¢ 9 | 12.79¢ | About 36% |
| Greer CPW (rate 750), on-peak / off-peak | 6.54¢ / 4.251¢ 10 | 11.80¢ | About 55% / 36% |
| City of Rock Hill (PMPA), on-peak / off-peak | 3.874¢ / 2.168¢ 5 | 12.55¢ | About 31% / 17% |
Example: the blended value of a kWh
An illustration using Santee Cooper’s published figures above. The 60/40 split between self-use and export is a round number we chose, not a measured one.
| Step | Math | Result |
|---|---|---|
| Solar kWh used at home (60%) | Each saves the average retail price, 11.38¢ | 0.60 × 11.38¢ = 6.83¢ |
| Solar kWh exported (40%) | Each earns the DG-25 credit, 4.15¢ | 0.40 × 4.15¢ = 1.66¢ |
| Blended value per solar kWh | 6.83¢ + 1.66¢ | About 8.5¢ |
| Same system, 80% self-use | 0.80 × 11.38¢ + 0.20 × 4.15¢ | About 9.9¢ |
The buyback rate matters most when you export a lot. Raising self-use moves more kWh to the higher retail value. The net billing calculator runs this with your own numbers.
Where to find your buyback rate
- Your utility’s solar rider or tariff PDF. Search for “credit”, “excess”, “surplus” or “avoided”.
- The rate-change notice your utility mails or posts. Credits that track avoided cost often change each year; Santee Cooper’s must be reviewed at least yearly 4.
- Your interconnection agreement, which names the tariff you joined.
- Your bill, as a credit line or a “received kWh” figure times the rate.
- Our guide net metering vs net billing vs buyback shows how each looks on a bill.
Strengths and weaknesses of buyback pricing
For the homeowner
- You are paid something for every surplus kWh, rather than nothing.
- A published rate is easy to plug into a payback estimate.
- Time-of-use buyback rates reward systems that export in peak hours.
Against the homeowner
- The rate is usually a fraction of retail: from about 17% to 55% of average retail across the SC tariffs above.
- Avoided-cost-based rates move with fuel prices and can fall.
- Some rates are minimums the seller can change, such as Rock Hill’s PMPA rates 5.
What a buyback rate leaves out
A buyback rate prices energy. It rarely pays for other things solar may give the grid, such as lower peak demand, avoided line losses or cleaner air.
Georgia’s order shows how fights over these items play out: the Commission added transmission and distribution losses but set one value, regulation support, to zero pending review 2.
It also says nothing about who keeps the renewable energy certificates (RECs). Santee Cooper lets DG-25 customers keep theirs for now but reserves the right to change that 4. Duke Energy Carolinas’ SC rider gives them to Duke 6. Read the tariff for both the price and the REC terms.
How the buyback rate feeds into cost and payback
We do not give system prices; see our solar cost guide. The buyback rate changes the value side of the sum.
A low rate makes oversizing costly, since each extra kWh earns only a few cents. It also makes a battery look better, because stored solar replaces retail-priced power at night. Fixed monthly solar charges also eat into buyback income; Santee Cooper adds $10.00 a month for residential DG customers 4.
Test any quote by asking what buyback rate the installer used, and whether they assumed it rises. The payback calculator lets you try a lower rate.
How to compare a buyback rate with retail, step by step
- Find your retail energy price per kWh on your bill or tariff. Leave out fixed monthly charges, which solar cannot cut.
- Find the buyback rate in the solar rider. Note if it differs by time of day.
- Divide buyback by retail. Under 40% means exports are worth much less than self-use.
- Ask your installer what share of output they expect to export.
- Blend the two values, as in the example above, to get the real worth of a solar kWh.
- Check when the rate last changed and how it is updated, so you know how stable it is.
Keeping track after you sign up
- Note the rate on your first bill with solar, then check it each time the utility announces new rates.
- If your utility updates on a set date, such as Berkeley Electric around 1 March each year 8, put that date in your calendar.
- Keep a copy of the tariff version in force when you signed. It helps if a credit looks wrong later.
- Re-check your self-use share after big changes at home, like an EV or a heat pump.
Warning signs on a quote or bill
- A quote values exports at the full retail rate when your tariff pays a buyback rate.
- A quote assumes the buyback rate will rise each year with no source.
- A salesperson quotes a buyback rate but cannot name the tariff.
- Your bill shows exports but no credit. Call the utility, then your installer.
- You plan to move a meter or add panels. That can change which tariff and rate apply.
Rule of thumb
When the buyback rate is a small share of retail, every kWh you use at home is worth two to six times more than one you sell. Size and schedule for self-use first.
The rules behind buyback rates
United States (FERC). 18 CFR §292.304 sets the avoided cost ceiling and requires standard rates for qualifying facilities of 100 kW or less 1.
Georgia (Public Service Commission). Georgia Power’s avoided cost and RCB method: order in Docket Nos. 4822 and 16573, 2 March 2021 2. Home compensation runs through the RNR tariff, under RNR-Monthly Netting or RNR-Instantaneous Netting 2. Georgia EMCs set their own terms; check yours.
South Carolina (Public Service Commission and public power boards). Act 62 of 2019 (SC Code Title 58 Ch. 40) moved new investor-owned utility customers onto Solar Choice tariffs 13. Santee Cooper’s board sets DG-25. City utilities follow their own contracts.
Virginia (State Corporation Commission). Dominion Energy Virginia’s NEM 2.0 pays $0.05829/kWh for annual net excess, under Case PUR-2025-00079 (Order on Clarification 20 May 2026), for new non-low-income interconnections from about 1 May 2027 14.
Buyback rate vs related terms
| Term | What it is | How it differs |
|---|---|---|
| Buyback rate | Price per exported or net-excess kWh | — |
| Avoided cost | The utility’s saved cost per kWh | Often the base the buyback rate is built from |
| Retail electricity rate | What you pay per kWh you import | Usually two to six times the buyback rate in SC |
| Net billing | A billing method with separate import and export prices | The structure; the buyback rate is its export price |
Common misconceptions
- Myth The buyback rate is what all my solar is worth.
- Reality It only prices exports. Solar used at home saves the full retail rate.
- Myth Buyback rates are set by federal law.
- Reality FERC sets a ceiling; states, boards and contracts set the number 1.
- Myth A buyback rate is locked in for 25 years.
- Reality Santee Cooper reviews its credit at least yearly 4; PMPA calls Rock Hill’s rates minimums 5.
- Myth Georgia Power runs a program called “Solar Buyback”.
- Reality The documents we read call it the RNR tariff 3. “Buyback” is a common nickname.
Buyback rates in South Carolina, Georgia and Virginia
South Carolina: credits range from 2.168¢ (Rock Hill off-peak) to 6.54¢ (Greer CPW on-peak) per kWh in the tariffs we verified, retrieved 5 Oct 2026.
Georgia: Georgia Power pays an RCB-adjusted solar avoided energy cost under RNR 3; we have not verified the current cents-per-kWh figure at the source, so we do not print one. Ask Georgia Power or your EMC for the current rate.
Virginia: Dominion NEM 2.0 sets $0.05829/kWh for annual net excess 14.
When the buyback rate should change your plan
- The ratio to retail is under about 40%. Size the system for daytime use, not for zeroing your annual bill.
- Your buyback rate is time-of-use. Ask if a west-facing array or a battery can shift exports into peak hours.
- Your rate is a minimum or reviewed yearly. Run your payback with a lower rate to see the downside.
- You are choosing between tariffs. Compare total yearly value, not just the headline rate.
- Next step: get quotes that state the tariff and buyback rate through Get Solar Options.
Questions about solar buyback rate
What is a solar buyback rate?
It is the price a utility pays or credits per kWh for surplus solar you send to the grid.
It usually applies under net billing or avoided-cost programs, where exports are bought at a set price instead of canceling imports one for one.
The tariff may call it a credit, surplus rate or avoided cost credit.
Why is the buyback rate lower than what I pay?
Because it is usually based on avoided cost, what the utility saves by not making or buying that power. Your retail price also covers poles, wires, staff and profit. Federal rules say utilities need not pay more than avoided cost for PURPA purchases, and many states use that as the base.
Who sets the solar buyback rate?
It depends on your utility. State commissions approve rates for investor-owned utilities, such as the Georgia PSC for Georgia Power. Public power boards set their own, like Santee Cooper’s board in South Carolina. Some city utilities pass through a rate from their wholesale supplier, as Rock Hill does with PMPA.
Does Georgia Power have a solar buyback program?
Georgia Power pays for surplus home solar under its Renewable and Nonrenewable Resources (RNR) tariff, for home systems of 10 kW or less.
The rate is a solar avoided energy cost adjusted under the Renewable Cost Benefit framework. People often call it a buyback program, but that is not the tariff’s name. Check the current rate with Georgia Power.
What is a good buyback rate?
Judge it as a share of your retail price. In the South Carolina tariffs we checked, credits run from about 17% to about 55% of the average residential price. Anything near the top of that range is generous for a new customer. Full retail credit is now rare.
How often do buyback rates change?
Often once a year. Santee Cooper must adjust its DG-25 credit at least annually. Berkeley Electric updates its rider around 1 March. Avoided-cost-based rates move with fuel and power prices, so expect changes up or down over the life of your system.
Is a buyback rate the same as net metering?
No. Net metering credits an exported kWh at the same value as an imported one, usually retail. A buyback rate pays a separate, usually lower, price for exports. Some tariffs mix the two, netting first and then buying any leftover surplus at a buyback rate.
Do I get paid cash or bill credit?
Usually bill credit, sometimes cash. Santee Cooper pays a monthly net credit of $50 or more by check and rolls smaller amounts forward. Rock Hill pays unused credit at the end of each calendar year. Dominion Energy SC cashes out banked surplus each November at avoided cost.
Can I raise the value I get for my solar?
Yes, by exporting less and using more yourself. Run big loads like laundry, pool pumps or EV charging in sunny hours. A battery can store midday surplus for the evening. Each kWh moved from export to self-use is worth your retail rate instead of the buyback rate.
Sources
- 18 CFR §292.304, Rates for purchases (LII), retrieved .
- Georgia Public Service Commission, Order in Docket Nos. 4822, 16573 and 19279 (Administrative Session 2 Mar 2021), retrieved .
- Georgia Power, Behind-the-Meter Interconnection Summary for Residential Customers (rev. 15 Aug 2025), retrieved .
- Santee Cooper, Distributed Generation Rider DG-25, retrieved .
- City of Rock Hill, Tri-Party net billing agreement with PMPA (rev. 17 Sep 2020; read via Internet Archive), retrieved .
- Duke Energy Carolinas (SC), Rider RSC Residential Solar Choice, retrieved .
- Dominion Energy South Carolina, Residential Solar Choice rider (PSC Order No. 2026-374), retrieved .
- Berkeley Electric Cooperative, Renewable Surplus Rider, retrieved .
- Palmetto Electric Cooperative, net billing, retrieved .
- Greer CPW, Residential Renewables rate code 750 (Feb 2026), retrieved .
- US EIA, Form EIA-861 2024 (utility residential revenue and sales), retrieved .
- Duke Energy Kentucky, Rider NM Annual Informational Report (31 Oct 2025), retrieved .
- South Carolina Code Title 58 Ch. 40 (Act 62 of 2019), 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: PURPA rate rules (18 CFR 292.304), the Georgia PSC order of 2 Mar 2021, Georgia Power’s residential summary, Santee Cooper DG-25 and Duke Energy Kentucky’s 2025 report were read at the source on 8 Oct 2026.
SC credit rates and EIA-861 prices are from the verified sc-local facts file (5 Oct 2026); Virginia from the verified input file. Share-of-retail figures are our division.
Georgia Power’s current cents-per-kWh rate was reported only by secondary sources and is deliberately not printed. Held for licensed review (G-REV).
Suggest a correction. We fix errors and say what changed.