Residential solar photovoltaics generate `green' electricity, but may also lead to an increase in household electricity consumption---a phenomenon termed the `solar rebound effect.’ This paper develops a theoretical framework for understanding the solar rebound. We show that the solar rebound is inherently linked to the net metering compensation a household faces. While the solar rebound is often simply a pure income effect, it can also include a substitution effect in some policy contexts. A negative solar rebound is even possible. We derive the welfare effects of the solar rebound and provide insights for econometric estimation.