Unlocking the Benefits of Net-Metering: An Overview of Regulations & Requirements
Updated: Mar 4
Net metering is an important part of owning a solar energy system for both homeowners and businesses. It’s a key element in the solar energy equation, enabling you to receive credits for the energy you generate that you don’t use yourself. In this article, we’ll provide an overview of net metering regulations and requirements.
Simply put, net metering is the process of measuring the difference between the amount of electricity you generate with your solar panels and the amount of electricity you use from the grid. When you produce more electricity than you use, the excess is sent back to the local utility provider, providing you with a credit on your energy bill. For example, if your solar panels produce 10 kWh in one month but you only use 8 kWh, you will be credited 2 kWh on your energy bill.
Net metering regulations vary widely by state, and can even vary by utility companies within states. The regulations will typically define the maximum system size you are allowed to install, as well as the rules and requirements for participating in net metering programs. Most states will require you to use a specific type of meter, and these regulations will cover issues such as interconnection, system ownership, billing periods, netting periods, and so on.
You’ll also want to make sure you understand the “net export limit” for your chosen utility company. This is the maximum amount of energy you are allowed to export back to the grid, and it can vary widely based on your location and utility company. Make sure you know what your net export limit is before you purchase a solar energy system.
Net metering plays a critical role in helping you maximize your solar energy savings. Knowing the regulations and requirements of the net metering program in your area can help ensure that you get the most out of your solar energy system. Be sure to thoroughly research the net metering regulations and requirements before you install a solar energy system.