Net Metering

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How does net metering work?

Net metering gives you energy credit for returning solar electricity to the grid, and it offsets electricity you take from the utility At night — giving you the full economic value of all the solar energy your solar panels produce. If your solar system is sized properly, you can potentially eliminate all your monthly electric costs.

Solar panels generate the most electricity during the middle of the day when the sun is out. When solar panels produce more electricity than a home uses, the excess generation is sent to the grid. This is where net metering comes into play. When a net metered system sends solar energy to the grid, your electric meter spins backwards and your utility applies a credit for the full retail value of electricity to your account.

Then at night, when your solar panels aren’t producing, you take electricity from the grid, “spinning” your electric meter forward again (meters are all electronic by-directional). At the end of the billing period, the utility nets how much electricity you sent to the grid versus how much you used to determine your final bill – hence the name net metering.

NET METERING MATH (a month)
Solar produces 1000 kWh A common question when looking at a solar app VS the utility bill.
Why didn’t I get all my credits on my bill, the simplest answer it’s because your home used them
Home uses 1200 kWh
Home uses 500 kWh during the day from solar 500 kWh
Net kWh 200 kWh
UTILITY BILL MATH
Solar excess – usage (you don’t see this part on the bill) 1200 kWh -500 kWh = 700 kwh
Utility bill usage kWh 700 kWh
Bill Credit excess solar 500 kWh
Bill Credit excess solarNet kWh 200 kWh