VNEM vs. Physical Submetering: Which Solar Billing Model Fits Your Building?

Virtual net metering (VNEM)

The utility credits solar production to individual tenant accounts based on an allocation schedule you file. No new physical meters required. Available in ~14 states.

Pros: cheapest to deploy, works with existing utility relationships, no wiring changes. Cons: only in eligible states, less flexible pricing, allocation changes require utility paperwork.

Physical submetering

You install revenue-grade meters on each unit's circuit and bill tenants directly for solar-attributed consumption.

Pros: works in any state, full pricing control, real consumption data. Cons: requires electrical work ($400–$900/unit), triggers utility-of-record filings in some states, more complex billing.

Default recommendations

• California, Massachusetts, New York, Illinois, Virginia: VNEM where the tariff is favorable.
• Texas, Florida, most SE states: physical submetering — VNEM often not offered.
• New construction / gut renos: submeter anywhere — the incremental cost is trivial during framing.

Want to see what your roof could earn? Estimate your NOI lift or talk to our team.