7/2/2021 Net Metering | SEIA

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Net Metering  
Net metering allows residential and commercial customers who generate their own
electricity from solar power to sell the electricity they aren't using back into the
grid. Many states have passed net metering laws. In other states, utilities may offer
net metering programs voluntarily or as a result of regulatory decisions.
Differences between state legislation, regulatory decisions and implementation
policies mean that the mechanism for compensating solar customers varies widely
across the country

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What Is Net Metering?

Net metering is a billing mechanism that credits solar energy system owners
for the electricity they add to the grid. For example, if a residential customer
has a PV system on their roof, it may generate more electricity than the home
uses during daylight hours. If the home is net-metered, the electricity meter
will run backwards to provide a credit against what electricity is consumed at
night or other periods when the home's electricity use exceeds the system's
output. Customers are only billed for their "net" energy use. On average, only
20-40% of a solar energy system’s output ever goes into the grid, and this
exported solar electricity serves nearby customers’ loads.

Giving Customers Control Over Their

Electricity Bills
Net metering allows utility customers to generate their own electricity cleanly
and efficiently. During the day, most solar customers produce more electricity
than they consume; net metering allows them to export that power to the grid
and reduce their future electric bills.

Creating Jobs & Encouraging Private

Investment

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Net metering provides substantial economic benefits in terms of jobs, income

and investment. Net metering increases demand for solar energy, which in
turn creates jobs for the installers, electricians, and manufacturers who work
in the solar supply chain. Today, the solar industry employs more than 250,000
American workers in large part due to strong state net metering policies
which have allowed the solar industry to thrive.

Protecting the Electric Grid

Unfortunately, some utilities perceive net metering policies as lost revenue
opportunities. In fact, net metering policies create a smoother demand curve
for electricity and allow utilities to better manage their peak electricity loads.
By encouraging generation near the point of consumption, net metering also
reduces the strain on distribution systems and prevents losses in long-distance
electricity transmission and distribution. There are a wide variety of cost-
benefit studies around the country that demonstrate the value solar provides
to local economies and the electricity system as a whole.

Want to support net metering policies in your state? Advocate for solar
energy. Your voice counts!

Want to learn more about how net metering policies work with solar? Learn
more about net metering and other solar topics on EnergySage.

Click on the map below to visit the Database of State Incentives for Renewable
Energy (DSIRE), which catalogues various policies for renewable energy
nationwide, including net metering. 38 states plus Washington, D.C. and
Puerto Rico have mandatory net metering rules in place.

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Principles for the Evolution of Net Metering and Rate Design

In May 2017, SEIA worked with a broad array of stakeholders to develop a set of principles to guide the future of net metering and rate design.

View the Principles

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Where It's Happening

Want to learn what's happening state-by-state in the U.S. solar industry?

Explore The Map

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