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How to Get The Credit You Deserve From Net Metering

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Kristie Moser
The laws regarding solar panel installations and net metering can vary drastically from state to state.  Many of these legislative measures are aimed at incentivizing people to install solar panels on their property to produce electricity. Some states may offer solar rebates, tax credits or property tax breaks, while others may have state promoted Renewable Portfolio Standards (RPS).  Another type of incentive offered by certain states and utility companies is net metering.


Net metering, or net energy metering (NEM), is a system used by electric utility companies to determine your electric bill, based on the net amount of electricity you use. Net metering is a tremendous advantage for homeowners and business owners who produce electricity for the grid. This includes solar power! Simply put, a net metering system that fully credits electricity contributed to the grid means that homeowners and business owners will only be charged for the difference of electricity used versus electricity produced. 


How does net metering work?

Power Consumed from the Grid - Power Produced and Transferred to the Grid = Net Power ConsumptionFor example, if a household uses 1,000 kWh of electricity in a given month, but produces 850kWh in solar power connected to the utility grid, then the home would only be charged for 150 kWh of electricity. 

Why Does Net Metering Matter?

Receiving full value for the electricity your produce as a homeowner or business owner is why net metering matters! Often times the pattern of electricity produced by homes and business is not the same as the pattern of power consumption. Rooftop solar panels produce energy during the day, while the household may consume a significant amount of power while the sun is down.

Without net metering, the solar power produced by the rooftop solar panels may not be fully credited to the homeowner since not all of it is directly consumed by the producer and the excess is contributed to the power grid. With net metering, regardless of when electricity is consumed or produced, the produced electricity is fully credited to the home or business.

Solar power is becoming more and more popular as a way to produce environmentally friendly energy.  Coupled with financial incentives such as tax credits, solar rebates, and net metering—going green with a rooftop solar panel system is a great way to save some green as well!

Ready to go solar? Contact the Sunpro Solar team of dedicated solar power professionals today!New Call-to-action

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