by Ever found yourself peering at your utility bill, scratching your head about how net energy metering works when it comes to solar credits? You’re not alone. Let’s shed some light on how those excess solar credits are actually calculated, so you can follow the numbers like a pro.
Imagine this: your solar panels are pumping out electricity at noon while everyone’s at work, and your house is hardly using any juice. That unused energy doesn’t just disappear. Through net metering, it spins your electric meter backward, sending electricity out to the grid. This is your golden ticket earning solar credits.
But how are those credits added up? It starts with your electric meter, usually a two-way digital device. One direction measures power you pull from the grid. The other direction measures power you push out. Each kilowatt-hour (kWh) that your solar system exports gets tallied up. The utility compares those two numbers energy in vs. energy out over your billing period. Simple subtraction, plain and straightforward.
If you send out more than you use during the month, you rack up credits. The standard unit? Kilowatt-hours. For every kWh exported and not used immediately, you earn a credit. These credits offset what you take from the grid whenever your panels aren’t making enough think nighttime, stormy afternoons, or when your cousin visits with every appliance running.
Now, here’s where it gets interesting across different states. Not every utility uses the same rates for credits. Some credit your excess at the full retail rate, which means every kWh you export erases a kWh you later use from the grid. In other areas, credits might be pegged to a lower “avoided cost” rate usually what it would have cost your utility to generate that power themselves, not what you pay as a customer. This can mean a smaller credit per kWh, depending on your ZIP code and provider.
Curious about leftovers? If, at the end of your billing cycle, credits remain, most utilities roll them over month-to-month. Picture it like mobile phone rollover minutes use them when you need. At the end of the year, some places let you cash out or donate your credits, but others zap the extra, starting you fresh for the next year.
To recap: your excess solar credits are calculated by subtracting what you consume from what you generate and feed to the grid, using kWh as the currency. The value of those credits relies on your state’s rules. Staying savvy about the specifics helps you get the most out of your solar investment turning sunlight into savings, one credit at a time.