Net vs gross metering

Written and checked by the Energy Merchants desk · Reviewed 2 October 2026

Net metering and gross metering describe two ways of measuring a solar system at the meter.

Net metering is the arrangement almost all new systems use. The solar system is wired behind the customer’s meter, and the solar power is used on site first. The meter records what is imported when the solar is not enough and what is exported when it produces more than the site uses. The customer pays for net imports and receives a feed-in credit for exports.

Gross metering measures all of the solar generation on its own meter, separate from household consumption. The customer buys all of their electricity from the grid and is paid for every kilowatt-hour the system generates. It was used for some earlier feed-in schemes, which paid a premium for total generation, and these schemes have closed to new participants.

In practice

For a new installation, you are almost always setting up net metering, and the job is mostly about the connection: a compliant meter arrangement, the right network application with the distribution network service provider (DNSP), and a National Metering Identifier (NMI) that matches the paperwork. A mismatched NMI on an application is a classic cause of connection delays.

Gross metering comes up on upgrades to old systems. A customer on an old gross scheme who adds panels or replaces an inverter may be at risk of losing their premium tariff if the change moves them off the original terms, so confirm the scheme rules with the retailer before touching anything. It also matters for STCs: whether the installation counts as new, replacement or additional affects the certificate claim. See installation types.

Common confusion

Net metering is not the same as “net zero” or a net feed-in credit. It is simply a measurement method. And the method has no bearing on how many STCs the system creates, which depends on system size, zone and deeming period.

Customers also assume that “net” means the retailer pays full retail price for exports. It does not. Exports earn the feed-in tariff, usually much lower than the price paid for imports. See feed-in tariff.

Related terms are in the certificate trading glossary. For the certificate side of an upgrade, see STC trading.