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Net metering
Net metering is a billing tool that uses the electric grid to store excess energy produced by your solar panel system. Under net metering, you can receive credits on your electric bill for any energy your solar panels produce that you don’t immediately use.
Common questions
How does net metering work?
With a grid-tied solar panel system, when your solar panels generate more electricity than you use at any point during the day, the electricity is sent back–or exported–to the grid, essentially running your electric meter in reverse. On the other hand, when you need more electricity than your solar panels generate (e.g. at night or on cloudy days) you pull electricity back from the grid, running your meter forwards.
At the end of the month or year, you are billed the net of what you put onto the grid and what you took off the grid: hence “net metering”.
Can I receive a check from my utility company for the extra solar electricity I generate?
In most cases, you’ll receive bill credits–not cash payments–from your utility company for the extra solar electricity your system produces. If you end up generating more electricity than you use in a year, utilities in some states will let you carry credits over into future years, while others will reduce your credits or send you a one-time payment for a fraction of the retail credit value. With that in mind, it’s important to size your solar panel system to be large enough to offset as close to 100% of your electricity needs as possible, but not to produce significantly more than you use (or will use in the future).
Where is net metering available?
Net metering policies vary by state and utility company. Fortunately, the majority of states (30+) have policies that compensate homeowners and businesses for excess solar electricity in one form or another, with net metering being the most popular policy among them. The Database of State Incentives for Renewables and Efficiency (DSIRE) is a good place to track the current status of your state and/or utility’s unique net metering policy.
What if my utility company changes our net metering policy after I go solar, or gets rid of it entirely?
In past cases where a state or utility company has changed its net metering policy, they typically include a grandfather clause that ensures past solar customers can continue to benefit from the original net metering structure.
Will I still receive an electric bill after going solar?
Yes – the overwhelming majority of solar panel installations are grid-tied, which allows you to draw from the grid when you need more electricity than your solar panel system is generating (e.g. at night), as well as send any excess electricity you generate out to the grid for net metering credits. Your bill post-solar install will charge you for the energy your solar panel system or net metering credits didn’t offset, and may even include a negative value if you generated more solar electricity than you used over a given billing cycle!
Importantly, you’ll likely still owe any fixed fees your utility company charges for service (e.g. customer service fee). Before going solar, we recommend checking with your utility company to see which fees you’ll still be responsible for paying post-installation. Many utility and/or solar companies can also provide example bills so you can see net metering in action! Here’s more information on what your electric bill will look like post-solar.