Let’s see how net energy metering credits really show up on your power bill. It isn’t magic, but it could feel like it if you don’t know what to expect.
Picture this: on a sunny Tuesday, your solar panels are generating photons and making your electric meter go backwards. You’re making more energy than you need. What’s going on? Your utility company gives you credit for every extra kilowatt-hour (kWh) you deliver to the system, just like giving your neighbors a loan. You get electricity from the grid when your panels go on vacation on a foggy day. That’s when the credits begin to help you.
How do they get the numbers? For instance, if you give the grid 300 kWh in April but use 400 kWh that month, you only pay for the “net” 100 kWh after the utility takes the rest. That “netting” happens once a month, and if you spend more than you make, your credits roll over. It’s like rollover minutes, but far more useful. In many parts of the U.S., these credits are worth the full retail price, which is one dollar for every kWh. You can sell one kilowatt hour (kWh) and then buy it again for the same amount.
But not all states agree. Some utilities give you a “wholesale” or “avoided cost” rate for extra electricity, which is less than what you would pay in a store. That changes the math. You might just see 3 to 5 cents on your statement instead of the 14 to 16 cents per kWh that people in California pay. It can hurt, especially if you put your system up to get a lot of credit.
Look at your regular monthly utility bill now. Most people see a “net usage” line, and sometimes there are small arrows that illustrate what you pushed out and what you brought in. If you used less power off the grid than you exported, your bill could be $0 save for the basic connection expenses. Over the course of a few months, you should make more than you use. Some utilities keep providing you credits season after season, while others start afresh every year with the “annual true-up.” That might be a great surprise or a sad reset. Make sure you know what the rules are before you start collecting treasure.
It’s not just a game of luck. To find out how many net energy metering credits you have, you take the quantity of energy that goes out and subtract the amount that comes in. Then you multiply that by the awarded rate. That number is what many solar owners look forward to seeing every month.