You install solar panels, connect to the grid, and then you start to question if net energy metering will lower your electricity prices. Doesn’t it sound great? But this is how the pieces of the puzzle really fit together.
Let’s start with the basics. Under net energy metering, every kilowatt-hour your system contributes to the grid is worth something. You still get power like normal when the sun goes down later. You can use the credits you earned to pay for the things you get from the utility. You could get rid of the energy charges on your account if you make as much or more money in a year than you spend.
But, and there’s always a “but,” reality is weird. Credits don’t always pay for everything that utilities charge. Your account usually has service fees, connection fees, and other set monthly expenditures, just like that one houseguest who never leaves. Even if you don’t use much grid electricity, many power companies charge a baseline fee, like $10, $20, or more. Some utility districts charge costs that even enormous solar credits can’t pay for. So, even though your energy cost can go down to zero, your bottom line can still be a little above zero.
Here’s a different angle. Net metering rules vary by state and even by town. Some places let you keep credits that you didn’t use from one month to the next. Some people “net meter true-up” once a year, which means they start over from the beginning. You might be able to use the credits you earn in April in December when there isn’t as much sunlight if you work really hard. But don’t expect to get a check in the mail for big overages. Many utilities will pay you for credits you don’t use at a price that is a little less than what you would pay at a store. Sometimes it’s not much.
Do you know what minimum bills are? Some jurisdictions employ them to make sure that everyone who utilizes the grid helps pay for its upkeep. Even if your solar system could power your neighbor’s hot tub and your Tesla, you might still have to pay a monthly minimum of $5 to $20.
In short, yes, net energy metering can lower your bills by a lot, even to nothing. You should note that those “set in stone” expenses and connections normally don’t change. For most folks, the thrill of a tiny money and maybe bragging rights at the neighborhood picnic is worth every sunbeam.