By Abby Berry and Thomas Elzinga
Residential solar systems are becoming more attainable, and more homeowners are exploring rooftop solar panels as an additional source for powering their homes. The amount of electricity produced by rooftop solar panels depends on several factors, such as your home’s sunlight exposure and the number of panels installed. In many cases, rooftop solar panels can generate an adequate amount of electricity to power your home, but not as a backup power source.
What is net metering?
Central Electric Cooperative offers a net metering program, which compensates solar owners for any excess electricity the system produces. If a solar system generates more power than the home requires (typically during peak sunlight hours), the additional electricity can be fed back into the electric grid. In return, the homeowner will receive a credit on their energy bill for the excess energy. This billing arrangement is known as “net metering.” While rooftop solar is the most popular renewable generation source for homeowners, it should be noted that net metering can also be applied to small-scale wind, hydroelectric, geothermal and biomass systems that generate electricity.
How does Central Electric Cooperative know how much to credit for the excess power?
When rooftop solar panels produce less electricity than the home requires, the electric meter records how much, just as it would on a home without solar panels. But when the solar system generates more electricity than you need, a special electric meter records the generation that flows back into the grid, and the excess power is sent back to the grid. At the end of the billing cycle, you are charged for the “net” energy used from the electric grid. It’s important to understand that the amount of electricity you use does not include the full cost of maintaining grid infrastructure that supports your home year-round. This is why you will typically see charges (in addition to “net” use) that help maintain reliable electric service, such as grid upkeep, transformer upgrades and system balancing. This is labeled as a facilities charge on your bill.
Net metering is especially helpful throughout the year, as solar production is typically higher during summer months and lower during winter months. It allows solar system owners to earn credits during high-production months and use them later in the year when solar output is lower.
Who uses the excess power generated by the solar system?
The electricity produced by rooftop solar doesn’t necessarily go directly to your neighbors. The power flows back to the local grid and the power could flow to various locations. Regardless, we apply the credits for any excess power you’ve contributed.
While generating electricity from the sun (and sending excess power back to the grid) is an exciting opportunity, it’s important to thoroughly research the details before installing solar panels or any other type of small-scale renewable energy system. In many cases the pay back is many years in the future. After getting some quotes you can chat with one of our energy specialists to estimate an approximate payback.
CEC members who install solar and participate in net metering will need to sign an interconnection agreement, ensure a bi-directional electric meter is installed. More information can be found on our website at, Net Metering – Central Electric Cooperative.
You should also work with a reputable solar vendor to ensure generation estimates are realistic and that your home is equipped for the system. We recommend looking at your local contractors as the first source of information regarding system costs. CEC energy specialists can help you estimate what size system might be best for how much power your home uses.
It’s important to note that net metering will not eliminate your energy bill. Even if you generate as much electricity as you use, which is rare, you will continue to be billed for essential services such as grid access, service fees and other fixed costs that are necessary to maintain a safe and reliable system.
If you’re interested in solar or would like to learn more about net metering, CEC can help. By connecting with us first, you can gain a better understanding of the solar energy system, billing options and more.