Under this model, you pay the retail rate for electricity you import, but you are credited at a wholesale or "avoided cost" rate for what you export. These buy-back rates are typically much lower than retail prices, often ranging between $0.02 and $0.06 per kWh . Key Factors Influencing Rates
There are two primary frameworks used by utility providers to calculate buy-back value:
This is a 1-to-1 exchange where you receive credit for every kilowatt-hour (kWh) sent to the grid at the full retail rate . It effectively uses the grid as a "free battery," allowing you to bank energy during the day and pull it back at night for no extra cost.
