How net metering works in Pennsylvania
Learn how solar net metering works in Pennsylvania, including excess solar production, utility credits, annual reconciliation and differences for homes and businesses.
01 EXCESS PRODUCTION
What happens to excess solar production?
Solar production serves the property's electrical loads first.
If the system produces less electricity than the property is using, the remainder comes from the utility grid. If it produces more, the excess passes through a bidirectional meter and flows onto the grid. ​
The meter records both directions ​
Electricity delivered from the grid to the property Excess solar electricity exported to the grid For eligible net-metered customers, exported kilowatt-hours can offset kilowatt-hours drawn from the grid. Unused monthly credits generally carry forward into later billing periods.
A credit is not stored electricity
The utility records exported energy and applies the resulting credits to the account.
02 UTILITY TERRITORY
Why does your utility territory matter?
Pennsylvania establishes statewide net-metering rules for regulated electric distribution companies. The utility serving the property still controls its own interconnection and billing process.
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Application and online portal
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Technical and engineering review
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Meter installation and activation
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Bill format and credit descriptions
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Requirements for larger systems
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Electric cooperatives and municipal utilities may operate under different rules. Customers using a competitive electricity supplier should confirm that supplier's net-metering terms before enrolling or switching.
Interconnection and net metering are different
Interconnection is permission to connect the system to the grid. Net metering is the billing arrangement that measures and credits grid imports and exports.
03 CREDITS
How do net-metering credits work?
For eligible customers receiving default utility service, Pennsylvania regulations provide a full retail kilowatt-hour credit for solar production up to the amount of electricity used during the billing period.
Unused kilowatt-hours generally carry forward and can offset usage in later months. At annual reconciliation, remaining excess generation is compensated at the applicable price-to-compare rate, which is generally less valuable than offsetting retail usage.
Are net-metering credits the same as SRECs?
No. Net-metering credits concern electricity and utility billing. An SREC represents the renewable attributes of 1,000 kWh of qualifying solar generation and is tracked separately.
Does net metering eliminate the entire bill?
Not necessarily. Fixed monthly, minimum, demand or other non-kilowatt-hour charges may remain. A proposal promising a zero bill should identify exactly which charges remain.
04 RESIDENTIAL & COMMERCIAL
Is net metering different for homes and businesses?
Pennsylvania net metering follows the same basic principle for residential and commercial customers: solar energy used on-site reduces electricity purchased from the grid, while eligible excess production can be credited through net metering.
For businesses, however, rate structure, demand, operating hours, system size and the facility's load profile can make the financial impact more complex. A commercial system should be designed around how and when the facility uses electricity—not simply its annual consumption.
05 COMMERCIAL LOAD PROFILE
Why does load profile matter for commercial solar?
For a business, when electricity is used can matter just as much as how much is used.
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Solar panels produce the most electricity during the middle of the day. Businesses with strong daytime electricity use can consume more solar power as it is produced, while businesses with evening, overnight or highly seasonal loads may export more electricity to the grid.
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Operating hours, seasonal demand and the utility rate structure can all affect the result. Understanding the property's load profile helps determine an appropriate system size and how net metering fits the business.
06 GRID CREDIT OR STORED POWER
Net metering versus battery storage
Net metering and battery storage perform different jobs. Net metering sends excess electricity to the grid and records a credit on the utility account. It can offset electricity drawn from the grid, but it does not provide backup power during an outage. ​
Net metering can
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Offset electricity drawn from the grid
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Carry eligible credits into later months
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Improve the value of unused solar production
​Battery storage can
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Store solar energy at the property
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Power selected loads during an outage
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Increase onsite use of solar electricity
A battery is not required for net metering. Its value depends on backup priorities, energy-use patterns and additional system cost.
BEFORE YOU GO SOLAR
What Should Be Verified
Before designing a solar system, a few details should be confirmed for your specific property:
​​✓ Your electric utility and supplier
Confirm who delivers your electricity and who supplies it.
✓ Your electricity use
Review recent usage and account for expected changes such as EVs, heat pumps or business growth.
✓ The right system size
Size solar around the property’s actual energy needs—not simply the available roof or ground space.​
✓ Net-metering eligibility
Confirm the proposed system qualifies under the rules that apply to your utility and service.
✓ Utility and export limitations
Check for interconnection requirements or grid conditions that could affect the project.
✓ What solar will actually accomplish
Estimate production, utility credits, remaining electric costs and whether battery storage adds value.