Net Metering

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  • Net Metering
    Posted by Katherine O'Byron | 5 replies |  Last reply about 4 years and 10 months ago by Pierre Moses

    What is net metering?

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  • Net metering allows for homeowners who have solar on their roof to sell the excess electricity produced from their solar array back to the utility company. Net Metering policies can differ from state to state, utility to utility, offering either retail electricity rates or wholesale electricity rates for excess production. This is a waste free utility strategy, meaning that the customer gets credit for 100% of the solar generated electricity, either by using the electricity as its produced or selling it back for kWh credits on their monthly bill.

    Pierre Moses posted on October 11, 2012
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  • My parents want solar power but their local energy utility doesn’t offer net metering. Any ideas on how to lobby local government or utility to get on board?

    Taylor Royle posted on October 12, 2012
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  • Net Metering policies are usually instituted and managed by the Public Service Commission, so I would start there. Net Metering polices encourage the public adoption of solar energy, and reduce stress on an overtaxed electrical grid. Solar’s peak performance hours coincide with the warmest hours of the day, so shaving off peak utility rates with solar is a positive thing for utility companies because thats when its most expensive for them to keep up with public electricity demand.

    Pierre Moses posted on October 12, 2012
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  • I saw in another post that over generating power with my solar system doesn’t make sense in Louisiana. Why is that? Can we sell power back to the grid? Even if I can’t today, let’s say we successfully lobby to change the policies. How hard would it be to then add on to my “right-sized” system?

    Dan Henry posted on November 9, 2012
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  • Net metering laws have been in place since 2007 in LA, so you absolutely are able to sell power back to the grid. But ‘selling back to the grid’ actually means Entergy will credit your account with surplus kWh’s. These built up credits are intended to be used at another time. You can roll over credits indefinitely, but you will never receive a check from Entergy for your kWh credits, unless you close your Entergy account. Net metering periodically is encouraged and expected, as long as you balance out the net metered credits with kWhs you use at another time. The only strategy that doesn’t make sense in LA is to consistently overproduce electricity resulting in a surplus of useless credits. Even if you sell your home and close your account with existing built up credits, Entergy will apply a wholesale rate for your compensation. The current policy climate is maximized when a system is appropriately sized for the consumption needs of the home. In other states, there are production incentives that generate revenue for the homeowner regardless of whether the electricity is being used in the home or primarily sent back to the public grid.

    Pierre Moses posted on November 9, 2012
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