If you are considering solar energy for your home, you may have wondered about the possibility of generating more solar energy than you actually use. If this happens, can you sell the unused electricity back to the utility company? In some cases, you can. The practice is called “net metering.”
More than 40 states have some type of net metering program. Net metering policies and regulations vary by state. The Database of State Incentives for Renewables & Efficiency (DSIRE) gives homeowners a way to check for policies and solar incentives by zip code.
How does this work exactly? During the day while your solar panels are at work generating electricity, this energy gets stored on the grid as “energy credits.” Whenever you use electricity in your home, you borrow from those credits. Any amount left over can be turned into credits you can sell back to your utility company, as long as it is one that participates in a net metering program.
The rules will vary by state and by utility company. Some utility companies may have caps on the amount of electricity you can sell back to prevent people from taking advantage of the system. You aren’t going to get rich by selling your electricity to the utility company. It is, however, a great way to save on electricity bills for people who are already using solar.
The possibility of reducing your electric bill by being able to sell unused energy back to utility companies through net metering is just one of many reasons solar is a great energy choice for your home. Many states also offer tax incentives for installing solar panels, so if you are considering solar, you’ll want to check on those potential savings as well.
