UTILITIES & NET METERING
How net metering works in Pennsylvania
Net metering determines how electricity moving between your property and the utility grid is measured and credited. Your utility, electricity supplier, system size and annual energy use all affect how it applies to your property.
For the latest version of Pennsylvania's net metering law click here.
01 EXCESS PRODUCTION
What happens to excess solar production?
Solar production serves the property's electrical loads first.
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 are net-metering credits applied?
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 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.
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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
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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 BEGIN
What Should Be Verified
The utility account, proposed system size and recent electricity usage should be reviewed together.
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Which electric utility serves the property
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Whether the account uses default utility supply or a competitive supplier
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Whether the proposed system qualifies for net metering
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How the system size compares with recent annual electricity use
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Whether the utility has identified export or infrastructure limitations
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Which electric-bill charges solar can and cannot offset
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How monthly credits and annual reconciliation will appear
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Whether expected EV, heat-pump or business loads were included
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Whether battery storage is proposed for backup, energy management or both