Net metering is declining: how to get more value from your solar panels

November 12, 2025
Net metering

Across many countries, net metering and feed in tariffs are being reduced. As a result, exporting solar power is becoming less profitable. This article explains how to adapt with practical strategies that increase self consumption and improve your solar return. You will also learn how sharing your EV charger can generate extra income.

duurzaamheid is een middel, geen doel. Het doel is een leefbare aarde waarin welzijn en welvaart in balans zijn.

Abstract
Across many countries, net metering and feed in tariffs are being reduced. As a result, exporting solar power is becoming less profitable. This article explains how to adapt with practical strategies that increase self consumption and improve your solar return. You will also learn how sharing your EV charger can generate extra income.

Looking ahead: what happens after net metering declines

In most markets, it is now clear that high guaranteed compensation for exported solar power will not last forever. The real question is what comes next. Several developments are emerging worldwide. Home batteries receive a lot of attention because they allow households to store cheap or self generated electricity for later use. Yet as more people adopt storage systems, arbitrage opportunities on real time markets are likely to shrink.

Most household energy, especially in colder regions, is used for heating which is when solar production is low and electricity prices are often higher. This limits the efficiency of a home battery in many climates. Independent research organizations across Europe, North America and Asia increasingly question whether consumer batteries offer a strong financial return under current price structures. Payback periods tend to be long.

This makes it essential to look beyond the most obvious solutions. A range of other options can help households increase self consumption, reduce grid dependence and maintain strong returns on solar investments even as net metering programs decline.

What net metering used to offer

For years, net metering was a key financial incentive for homeowners with solar panels. Excess electricity exported to the grid could be offset at the same price as consumed electricity, which allowed solar owners to treat the grid as a virtual battery. As many countries reform their energy markets, this one to one compensation is disappearing.

Instead, households increasingly receive a feed in rate for exported electricity. These rates are usually far lower than the retail price they pay for electricity consumed from the grid. In many regions, retail prices exceed 0.25 to 0.35 dollars or euros per kWh, while feed in payments often range between 0.03 and 0.10. As these export rates fall, producing more electricity than you can use becomes less financially attractive.

Avoid low export payments and get more value from your own solar power

As grids worldwide face increasing congestion, many energy suppliers are reducing feed in compensation or introducing capacity based charges for heavy exporters. In some regions, the effective net benefit of exporting solar power has dropped to only a few cents per kWh.

This trend is expected to continue as more regions struggle with peak production and grid instability. That is why boosting your self consumption and using more of your own solar energy directly is becoming the key to maximizing your solar return. The big question is how to achieve that in practice.

Save more with your solar panels without extra investments

Many common recommendations start with improving insulation or installing a heat pump. These are important steps, but there are several creative low cost ways to adapt to the decline of net metering. Some require no additional spending at all, while others involve moderate investments. With the right habits and tools, you can increase your self consumption immediately.

Earn additional income by sharing your EV charger

Peer to peer EV charging platforms such as Plugfellow allow households to share their private charging station with others and earn revenue per charging session. These platforms promote local use of renewable energy, make EV driving more accessible and require no upfront investment.

Plugfellow works with a small commission per session and no fixed fees. With just a few charging sessions per month, solar owners can increase their effective return by up to forty percent, comparable to receiving a high export tariff but without grid related penalties. In busy areas, annual earnings can reach several hundred euros or dollars, delivering savings similar to a heat pump. At the same time, you help reduce grid congestion and support the energy transition.

Use your appliances smarter

As feed in tariffs fall, dynamic electricity contracts and time of use tariffs become more appealing. They reward flexibility by pricing electricity lower during periods with abundant solar or wind power. This is ideal for solar owners who are willing to shift their consumption throughout the day.

Simple adjustments make a difference. Replace outdated bulbs with LEDs. Choose energy efficient devices. Run high consumption appliances during sunny hours. Reduce standby power. Use smart plugs or energy monitoring apps to track your production and consumption.

These adjustments are often free and deliver quick results. By understanding your energy behavior, you increase the share of solar energy you use directly and make your household both more efficient and more sustainable.

Less is more: save energy by consuming consciously

A surprisingly effective way to reduce dependence on grid electricity is to simplify energy use. A broom often works as well as a vacuum cleaner. Air drying laundry replaces the need for a dryer. Turning devices off completely, choosing durable clothing that needs less washing or adopting low energy habits can significantly reduce consumption.

Small actions may seem minor, but together they add up. Combined with smart solutions like peer to peer charging, conscious consumption allows you to stretch the value of every solar kWh without spending more.

Higher cost options that also deliver higher returns

For households ready to invest more in long term savings and sustainability, several advanced solutions are available. We skip the well known options like heat pumps and insulation and focus on less obvious possibilities that complement solar production.

Targeted heating with infrared panels

Infrared panels are increasingly popular as efficient localized heating solutions. They heat objects and people directly, similar to sunlight, rather than warming the air. This makes them ideal for spot heating above a sofa, workspace or bathroom.

They heat up quickly, cost far less than heat pumps and require no major installation. However, they are only efficient as supplementary heating. For whole house heating, heat pumps remain more efficient. Still, for targeted comfort and effective solar use, infrared panels can be a smart addition.

Small wind turbines and community wind shares

While small wind turbines seem appealing for households without suitable roof space, they often require high investment and deliver limited output. Maintenance can be costly, and performance varies widely depending on local wind conditions.

A more effective alternative is participating in community wind projects or cooperatives. These larger scale systems offer stronger economies of scale, lower maintenance costs and more stable long term returns. They also spread risk and diversify renewable energy portfolios.

Wood or pellet stoves

Pellet and wood stoves can provide rapid independent heating during high price periods or grid shortages. Modern pellet stoves are efficient, automated and easy to operate which makes them a reliable off grid heating option.

However, wood combustion generates fine particles and emissions that many governments aim to restrict. While useful as a supplementary system, this method is not considered a long term sustainable solution at scale.

Home Energy Management Systems

A Home Energy Management System coordinates appliances, solar panels, heat pumps and EV chargers to optimize usage. It ensures that your home uses solar power first, operates devices at the best times and avoids peak grid prices.

HEMS solutions integrate well with peer to peer charging, which allows households to generate income from solar overproduction. They also offer detailed insights into device level consumption and help reduce grid load. Costs range widely depending on features from subscription models to fully integrated systems.

Get more from solar by combining solutions

Energy Options Table
Option Investment Average Annual Savings or Earnings Annual Return (%) Advantages Disadvantages Suitable For
10 Solar Panels €3,700 – €4,100 €240 – €276 5.0–7.5% Affordable self-generated electricity, long-term savings, increases home value Lower return without net metering, policy-dependent, possible maintenance issues Homes with suitable roof orientation (south/southwest)
Heat Pump €7,000 – €14,000 €850 – €1,970 12–14% Energy-efficient, high annual savings, eligible for subsidies High upfront cost, requires good insulation, possible maintenance Well-insulated homes with underfloor heating or low-temperature systems
EV Charger Sharing €500 – €800 €180 – €350 36% – 43% High return vs. cost, flexible, no investment if charger already installed Depends on local demand and location, mainly useful if you already own EV and charger Households with EV charger and solar panels
Infrared Panels €400 – €2,000 €160 – €320 8–15% Targeted heating, fast warm-up, easy to install, low investment Higher consumption than heat pump, less suitable for whole-house heating Homes or rooms with limited heating needs
Home Energy Management System (HEMS) €100 – €400 €30 – €185 30% – 46% Short payback time, energy usage insights, supports dynamic tariffs Limited impact without smart devices, may require subscription or installation Homes with solar panels, heat pump, EV charger or dynamic energy contract
Wood or Pellet Stove €3,500 – €5,000 €600 – €720 14 – 17% Heating without gas or grid electricity, fast warmth, fuel storage for winter Fine particle emissions, requires wood/pellet storage, biomass not sustainable at scale Well-insulated homes with good ventilation
20% Less Washing and Drying €200 (merino wool clothing) €45 – €70 16 – 20% Immediate impact on energy use, no payback time, reduced water usage Limited financial impact, merino wool is expensive, potential animal welfare concerns Any household
Community Wind Shares €1,000 (varies) €40 – €70 4 – 7% Stable returns, collective generation, risk spreading, no maintenance Dependent on wind yield and cooperative reliability People without suitable roofs or as an alternative to solar panels

Combining technologies amplifies their benefits.
Pairing a HEMS with infrared heating improves targeted energy use. Add peer to peer EV charging and your effective solar return can double from roughly six percent to around twelve percent depending on usage patterns. You can see the increase in the calculation. By combining these solutions, you increase self consumption and boost the value of every unit of solar electricity without large additional investments.

Stay independent and prepared for global energy trends

As feed in tariffs decline, many energy suppliers introduce smart devices or platforms that lock customers into proprietary ecosystems. This vendor lock in limits flexibility and complicates future upgrades.

Meanwhile, countries worldwide are shifting toward time of use tariffs where electricity costs vary across multiple price blocks each day. These tariffs encourage consumption during low demand periods and help reduce grid congestion. Over time, the differences between price levels are expected to widen.

Flexibility and independence are becoming essential in a rapidly changing energy landscape. Choosing open and interoperable systems ensures you remain in control of your energy data and future choices.

A new energy story beyond net metering

The decline of net metering is not a setback. It is an opportunity to use energy more intelligently. Net metering policies succeeded in stimulating solar adoption, but now face challenges such as grid congestion. This shift encourages us to stay within the limits of technology and the planet without relying solely on subsidies.

Sustainability is a means, not an end. The ultimate goal is a livable planet where well being and prosperity are balanced. Solar and wind alone are not enough. Conscious energy use and smarter systems are essential.

A decentralized energy system plays a major role in this new story. Sharing EV chargers fits seamlessly into this vision because it generates income, increases independence and supports clean mobility. Together, these steps help build a resilient decentralized and sustainable energy system for the future.