As residential solar systems become more affordable, many homeowners are considering rooftop solar panels as a way to help power their homes. The amount of electricity your solar panels can produce depends on several factors, including your home’s sun exposure, how much energy your household uses, and the size of your solar array. In many cases, rooftop systems can generate enough energy to significantly offset your electricity use.
What is Net Metering?
PenLight offers a net metering program for members who install qualifying renewable energy systems, most commonly rooftop solar. Net metering allows you to receive credit for any excess electricity your system produces.
When your solar panels generate more power than your home uses, typically during sunny midday hours, extra electricity is sent back to the local electric grid. In return, you receive credit on your PenLight bill that helps offset the electricity you draw from the grid when your system isn’t producing enough.
While solar is the most common, net metering also applies to small-scale wind, hydroelectric, geothermal, and biomass systems that meet interconnection requirements. 11415
How Are Net Metering Credits Calculated?
Your PenLight meter is bidirectional, meaning it measures both the energy your home uses from the grid and the excess energy your system sends to the grid. When your usage is greater than your generation, the meter runs forward. When you’re sending more energy back to the grid than you’re using, the meter runs backward.
At the end of your billing cycle, you’re billed for the “net” difference: your usage minus your solar production. If your system generates more than you use, you’ll see a credit applied. 12397
It’s important to note that even if you generate as much or more electricity than you use, you’ll still see some charges on your bill. These include the cost of maintaining the grid infrastructure that ensures safe, reliable power year-round— such as system upgrades, transformers, and distribution lines.
Seasonal Benefits
Solar production tends to be highest in the summer and lower in the winter, while your household energy use may fluctuate throughout the year. Net metering allows you to bank credits during high-production months and use them when your solar system isn’t meeting your full demand.
What Happens to the Extra Power?
The excess energy your system generates flows back into the local grid, where it contributes to the overall supply. PenLight then applies credits to your account for your contribution.
Getting Started with Solar
If you’re considering rooftop solar, we encourage you to review:
- The Solar and Net Metering information is on our website on the Solar Net Metering page.
- Ensure you have made all energy efficiency upgrades to your home before investing in solar panels
- Review our Net Metering Interconnection Policy
You’ll also want to work with a reputable solar contractor who can provide realistic production estimates and confirm your home is a good fit.
A Final Note
While solar can reduce your energy bills and environmental impact, net metering won’t eliminate your bill entirely. Even homes that generate electricity still pay for grid access and fixed charges that support system maintenance and reliability.
Contact PenLight by emailing Power Resources to learn more about net metering and whether a renewable energy system is right for you.