Solar production and home usage rarely match hour by hour. Net metering describes one way eligible exported electricity can be handled by a utility billing system, but it is not a promise that every exported kilowatt-hour receives the same value.
How solar and the grid work together
Your home uses solar electricity as it is produced. When the system produces more than the home is using, eligible excess electricity can flow to the grid. When solar production is lower than usage, the grid supplies the difference.
Eligible exports may create bill credits under applicable utility rules. The value depends on the state, utility, and project.
Imports, exports, and credits
When production exceeds usage, 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.
At night or during periods of low production, the home can draw from the grid. A yearly production estimate can be useful for planning, but bills are shaped by the timing of production and usage as well as the applicable billing structure.
Why system sizing matters
A larger system can produce more energy but may also change 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 describes how eligible electricity a solar system sends to the grid can create credits or other value through the utility billing system. The exact treatment depends on the utility, 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.
What happens when the 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.