Solar production and home usage rarely match hour by hour. Net metering describes one way eligible exported electricity can be handled by the utility billing system, but it is not a promise that every exported kilowatt-hour receives the same value.
The basic idea
Solar electricity generally serves the home’s immediate loads first. When production is lower than usage, the home can draw from the grid. When production is higher than usage, excess electricity may flow through the meter toward the grid and may create credits under the applicable rules.
When production exceeds usage
At a moment when a system is producing more than the home is using, the balance may flow outward through the meter. Depending on the project’s eligibility and utility rules, that export may appear as a credit or another form of value on the account. The credit rate, expiration, allocation, and program requirements are not universal.
When usage exceeds production
At night, during weather events, or whenever the home’s demand is greater than the system’s output, the home can draw from the grid. A yearly production estimate can be useful for planning, but the bills are shaped by the timing of production and usage as well as the applicable billing structure.
How credits generally appear
A utility bill may show energy delivered to the home, energy sent to the grid, and credits or charges handled under the account’s rules. Ask for an example bill or written explanation for the utility and system being proposed. Do not assume a calculator or sales presentation uses the same treatment.
Utility and interconnection considerations
The utility territory, account structure, system size, interconnection approval, meter configuration, and program eligibility can all matter. Interconnection is a separate practical step from installing the panels, and a system should not be represented as fully operational before it has completed the applicable approvals.
Why system sizing matters
A larger system can produce more energy but may also change the project cost, eligibility, export profile, and financing. The best system size is not automatically the largest roof can hold. Compare expected production with actual usage, site limits, equipment, and the rules that apply.
Net metering versus battery storage
Net metering is a utility billing concept. A battery is physical equipment that can store energy and potentially support later use or backup. A battery may reduce some exports by shifting energy to another time, but it also adds cost and operational considerations. They should be evaluated as related but distinct choices.
Net metering FAQ
What is net metering?
Net metering generally refers to a process where eligible electricity a solar system sends to the grid can create credits or other value under applicable utility and program rules. The exact treatment depends on the project and current rules.
Do exported kilowatt-hours always receive full retail value?
Not necessarily. The value of exported electricity can depend on utility territory, program eligibility, system characteristics, and current rules. Verify the treatment for the specific project.
What happens when my home uses more electricity than the panels produce?
The home can draw electricity from the grid, with the meter recording the flow under the utility’s billing process. How credits and charges appear depends on the account and applicable rules.
Does net metering work during a power outage?
Net metering is not the same thing as backup power. A standard grid-tied system generally shuts off during an outage unless it includes properly configured backup equipment.