Electric bills can feel unpredictable, especially as utility rates rise. One of the biggest advantages of going solar is the ability to offset those costs through a program called net metering. This system rewards you for the extra electricity your panels generate and helps keep your monthly expenses under control.

The Basics of Net Metering

Net metering is a billing arrangement between solar customers and their utility company. When your solar panels produce more energy than your home or business needs, that extra electricity flows back to the utility grid. In return, you earn credits on your utility bill.

Later, when your system is not producing enough to meet your demand (like at night or on cloudy days), you can use those credits to offset the cost of pulling electricity from the grid.

In many cases, net metering policies can also lower or fully offset the cost of the energy you use, with any remaining credits carrying forward for future use. This creates an opportunity for “double savings” by both reducing your bill and maximizing the value of your solar system.

How It Works Step by Step

1. Your solar system generates electricity during the day.
   
2. You use what you need in real time.
   
3. Excess energy is sent to the grid, spinning your meter backward and earning credits.
   
4. At night or when demand is higher, you draw electricity from the grid and use your credits to offset the cost.
   

Think of it as a give-and-take with your utility provider.

A Real-World Example

Let’s say your solar system produces 1,200 kWh in a month, but your household only uses 1,000 kWh. The extra 200 kWh is sent back to the grid, and you receive credits for it.

Next month, if your system produces less than you need, those credits can help cover the shortfall, lowering your bill.

To learn more about how credits are applied in your area, check your local utility’s Net Metering policy. For example, GRU’s Net Metering Policy provides details on how the process works.

Benefits of Net Metering

• Lower Utility Bills: You only pay for your “net” electricity use (what you consume minus what you send back).
  
• Faster ROI on Solar: By lowering monthly bills, your system pays for itself more quickly.
  
• Efficient Use of Energy: No electricity goes to waste. Anything you do not use immediately still benefits you.
  

Simple Setup: No extra equipment is required beyond a special meter provided by your utility. In many cases, a simple and affordable microinverter system is all that’s needed to get started and begin saving.

Things to Know About Net Metering

• Rules Vary by State and Utility: Some states offer full retail credit, meaning you are credited at the same rate you pay for electricity. Others only credit at wholesale or avoided cost rates.
  
• Excess Credits: In some areas, unused credits roll over month to month. In others, they may reset annually.
  

Future Policy Changes: Net metering programs can evolve, so it is important to understand your local regulations before you install solar. Policies vary by state and utility, and many companies update their rules as solar adoption grows.

Important Note

Net metering policies and credit structures vary by state and utility provider. Some areas offer full retail credit, while others use reduced or wholesale rates. Always check with your utility company or a solar expert to confirm how net metering works in your area.

Own Your Own Power

Net metering is one of the most effective ways to take control of rising utility costs. By understanding how it works, you can make the most of your solar system and see greater long-term savings.

Want to know if your home or business qualifies for net metering? Contact our U.S.-based solar experts at 903-441-2090 and start your solar journey today.