Net metering is a simple yet powerful tool that allows solar energy system owners to maximize the benefits of their investment. When your solar panels produce more electricity than your home uses during the day, the extra energy is sent to the utility grid. In exchange, your utility company gives you credits that offset your future electricity usage.
Think of it as a give-and-take system: during sunny days, you give energy to the grid, and at night or on cloudy days, you take it back, using the credits you’ve earned. This process helps solar homeowners reduce their utility bills and ensures they get full value for the energy their system produces.
How Does Net Metering Work?
1. Energy Production:
Your solar panels generate electricity when the sun is shining. During the day, they may produce more energy than your home needs, especially when no one is home to use appliances.
2. Sending Energy to the Grid:
The excess electricity your system generates is sent to the utility grid, where it helps power your neighbors’ homes and businesses.
3. Earning Credits:
For every kilowatt-hour (kWh) of energy you send to the grid, your utility company provides a credit on your bill.
4. Using Credits:
At night or on cloudy days when your solar panels aren’t producing enough energy, you can use the credits you’ve earned to offset the electricity you pull from the grid.
5. End-of-Billing Cycle:
At the end of the billing period, your credits are subtracted from the electricity you’ve used. If you’ve sent more energy to the grid than you’ve used, those credits typically roll over to the next month.
Breaking Down the Benefits of Net Metering
1. Lower Utility Bills:
Net metering significantly reduces or even eliminates your electricity costs. By offsetting your energy use with credits, you’re essentially paying less for the power you use.
2. Maximizing Solar Output:
Without net metering, any excess energy your panels produce would go to waste. This system ensures you get full value for every kWh your system generates.
3. Environmental Impact:
By sharing your excess solar energy with the grid, you’re helping reduce the demand for fossil fuels and contributing to a cleaner energy future.
4. Energy Independence:
While net metering doesn’t make you entirely energy-independent, it reduces your reliance on the grid and stabilizes your energy costs.
Net Metering in MD, PA, NJ, and DE
Each state has its own net metering policies and rules. Here’s a quick breakdown of what to expect in the areas Sunwise Energy serves:
• New Jersey:
• Credits are given at a 1:1 ratio, meaning every kWh you send to the grid is credited at the full retail rate.
• Unused credits roll over to the next billing cycle indefinitely.
• Maryland:
• Utilities like BGE and Pepco offer net metering with credits at the retail rate.
• Excess credits can roll over or be cashed out annually, depending on the provider.
• Pennsylvania:
• PECO and PPL Electric Utilities support net metering with retail rate credits.
• Credits can roll over month-to-month or be applied to annual bills.
• Delaware:
• Delmarva Power provides net metering credits at the retail rate.
• Homeowners can choose to roll over credits or receive annual payouts for excess energy.
Understanding Your Utility Bill with Net Metering
Your utility bill will look different after going solar with net metering. Here’s what you can expect:
1. Energy Credits:
A section of your bill will show how many kWh you’ve sent to the grid and how many credits you’ve earned.
2. Utility Charges:
You’ll still see a small monthly service fee for grid access, which usually ranges from $5 to $20.
3. Net Energy Usage:
If you’ve used more electricity than your system produced, you’ll see a charge for the net energy used. If you’ve produced more energy than you’ve used, your credits will roll over to the next billing cycle.
4. Annual True-Up:
Some utilities perform an annual “true-up,” reconciling any remaining credits or energy usage at the end of the year.
Can You Go Completely Off-Grid with Net Metering?
Net metering is a grid-tied program, meaning you’re still connected to the utility grid. While it doesn’t allow you to go entirely off-grid, it drastically reduces your reliance on the grid and stabilizes your energy costs.
For homeowners seeking full energy independence, pairing your solar system with a battery like the Tesla Powerwall or Enphase Encharge allows you to store excess energy and use it whenever you need it.
Tools to Maximize Your Net Metering Benefits
📱 Enphase App:
Monitor your solar production and energy usage in real time, so you can make informed decisions about your energy consumption.
💡 Energy-Efficient Practices:
Reduce your energy usage during peak demand times to maximize your credits and savings.
FAQs About Net Metering
1. Will I still get a utility bill with net metering?
Yes, you’ll still receive a bill showing any service fees and your net energy usage or credits.
2. Do net metering credits expire?
In most cases, credits roll over month-to-month and can be applied to future bills. Some utilities may have annual expiration dates.
3. Can I cash out my net metering credits?
This depends on your state and utility company. Some programs allow you to cash out excess credits at the end of the year.
4. What happens during a power outage?
Net metering systems require a connection to the grid, so they won’t work during outages unless paired with a battery backup.
Why Choose Sunwise Energy for Your Solar System?
At Sunwise Energy, we help you navigate the complexities of net metering to ensure you get the most out of your solar system:
• Local Expertise: We’re familiar with the policies and rules in MD, PA, NJ, and DE.
• Comprehensive Support: From installation to monitoring tools like the Enphase App, we’re with you every step of the way.
• Top Equipment: Pair your solar system with industry-leading batteries like Tesla Powerwall and Enphase Encharge for maximum energy independence.
Ready to Maximize Your Savings with Net Metering? 🌞
Contact Sunwise Energy to learn more about how solar and net metering can work for you.
📞 Call us: (609) 400-0059
📅 Book Online: sunwiseusa.com
