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Is Net Metering Only for Residential Properties?

April 5, 2026

Quick Answer

Net Metering Only for Residential Properties: No, net metering is also available for commercial and industrial properties, although the requirements and regulations may vary by location.

Types of Net Metering

Net metering allows customers to generate their own electricity and export the excess to the grid. In the United States, the Federal Energy Regulatory Commission (FERC) regulates interstate sales of electricity, including net metering. While residential net metering is more common, commercial and industrial properties can also benefit from net metering. For example, a large commercial building with a 100 kW solar array can generate enough electricity to power its own operations and sell the excess to the grid, offsetting its energy bills.

Net Metering for Commercial Properties

Commercial properties, such as office buildings, retail stores, and hotels, can take advantage of net metering by installing solar panels and selling excess energy back to the grid. According to the Solar Energy Industries Association (SEIA), commercial and industrial solar installations account for about 30% of all solar installations in the United States. To qualify for net metering, commercial properties typically need to have a minimum system size of 10 kW to 25 kW, depending on the utility company’s requirements.

Industrial Net Metering

Industrial properties, such as factories and manufacturing facilities, can also benefit from net metering by installing large-scale solar arrays. For example, a manufacturing facility with a 500 kW solar array can generate enough electricity to power its own operations and sell the excess to the grid. To qualify for net metering, industrial properties typically need to have a minimum system size of 100 kW to 1 MW, depending on the utility company’s requirements.

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