The Ultimate Guide to Net Metering

What is net metering?

When you go solar, you need a way to store the energy generated by your panels. You’ll often get more power from the sun than you can use in a day. When you produce more energy than your home can use, this extra energy is called offset. There are two things you can do with your offset. The easiest method is to hook into the utility grid to store energy and save it for later use.

But to do that, you’ll need to talk to your utility company and outline how you are credited and billed for power. These policies are referred to as net metering (or net energy metering) agreements.

Under a net metering agreement, the energy grid acts as energy storage for the solar homeowner, storing the power they generate so they can use it later. The utility tracks your meter to record your net energy usage (energy consumed minus energy sent to the grid) so they can bill or credit your account based on overall usage.

Each utility company has different terms and conditions, so it’s important to contact them before going solar to figure out how the connection process works. This article covers some of the most common agreements so you know what to expect. In the areas that we service, net-metering is pretty widely available so feel free to give us a call too if you aren’t sure if it’s available in your area.

So how does it work?

Solar systems typically hit peak electricity production in the afternoon, when many people aren’t home using electricity. By contrast, home electricity use is typically higher in the mornings and evenings. Net metering helps you to account for these ups and downs in your day-to-day electricity production and usage.

With net metering, excess electricity is fed into your electric utility’s grid when your system is producing more than you need. When this happens, your meter actually runs in reverse. This is exactly what you want to happen. When your system isn’t producing enough electricity, you can draw it from your utility just as you did before you went solar. This “back-and-forth” between your system and the grid ensures that your excess production will still be used and your shortages will be met. With net metering, the excess electricity your home produces covers the times when you don’t produce enough.

When your solar power system generates more electricity than you use over the course of a month, your utility bill will receive a credit based on the net number of kilowatt-hours you gave back to the grid. If you produce less electricity than you use in a given month, you must buy electricity from your utility to make up the difference. In these instances, you would pay for the electricity you use, minus any excess electricity your solar panels generated.

National Net Metering Laws

Net metering isn’t required by law in every state. As of November 2017, 38 states and Washington, D.C. had passed laws requiring this form of utility metering for solar-powered customers. Alternative solar energy compensation programs are offered in seven states and one U.S. Territory. Keep in mind though, the federal government gives a 26% tax credit to those who choose to go solar.

Florida’s Solar Net Metering Programs

NEM is legally mandated in Florida for photovoltaic solar energy, as well as various other renewable energy systems. The Florida Public Service Commission adopted Rule 25-6.065 in 2008. Florida Power and Light issues bill credits and even pays out compensation in January for credits that go unused for the year. There are also federal and state tax grants and credits that solar consumers can qualify for.

Net metering in your state

State	Net Metering?	Alternative Policy?
Alabama	No	No
Alaska	Yes	No
Arizona	Yes	No
Arkansas	Yes	No
California	Yes	No
Colorado	Yes	No
Connecticut	Yes	No
Delaware	Yes	No
District of Columbia	Yes	No
Florida	Yes	No
Georgia	No	Yes
Hawaii	No	Yes
Idaho	Yes*	No
Illinois	Yes	No
Indiana	Yes	No
Iowa	Yes	No
Kansas	Yes	No
Kentucky	Yes	No
Louisiana	Yes	No
Maine	Yes	No
Maryland	Yes	No
Massachusetts	Yes	No
Michigan	Yes	No
Minnesota	Yes	No
Mississippi	No	Yes
Missouri	Yes	No
Montana	Yes	No
Nebraska	Yes	No
Nevada	No	Yes
New Hampshire	Yes	No
New Jersey	Yes	No
New Mexico	Yes	No
New York	Yes	No
North Carolina	Yes	No
North Dakota	Yes	No
Ohio	Yes	No
Oklahoma	Yes	No
Oregon	Yes	No
Pennsylvania	Yes	No
Rhode Island	Yes	Yes
South Carolina	Yes	No
South Dakota	No	No
Tennessee	No	No
Texas	Yes*	No
Utah	Yes	No
Vermont	Yes	No
Virginia	Yes	No
Washington	Yes	No
West Virginia	Yes	No
Wisconsin	Yes	No
Wyoming	Yes	No