You may have heard or seen the term “net metering” when learning about solar. But, what exactly is “net metering” and how does it work? Do we have net metering in Southern Oregon? Does it work when putting solar panels on your house?
Here in Southern Oregon, your house must be tied to the local utility grid in order to use “net metering”. If your house is tied to a utility grid here in Southern Oregon, it is with either the City of Ashland or Pacific Power. The great news is that both of these power companies offer net metering because that is the law in Oregon.
How Does Net Metering Work?
Every house is equipped with an electric meter. When you use electricity by either turning lights on or plugging in your computer to charge, the meter shows how much electric energy is used from the utility company, and you are then billed for it. A net meter works differently. When you have a solar system installed, a bi-directional meter will be installed along with it. This meter will measure how much electric energy generates from the solar and how much you use every month and show the “net” electricity in kwh.
How Does Net Metering Affect My electric bill?
During the sunnier months of the year, your solar system will be producing more electricity than you use. This excess electricity will be given back to the grid. Your utility company will credit you for this solar-made electricity during the winter months when you are using more electricity than your system is making.
For City of Ashland utility customers, at the end of the year (which happens in March, not December) you should be just about “net zero”. This means that you made the right amount of energy: neither too much electricity nor not enough. Great job! If you made more than you used, then the City of Ashland will credit you on other portions of your utility bill at the electric retail rate + 25% tax (what you would normally pay for electricity). Click here for a photo reference on how to read your solar meter.
For Pacific Power utility customers, at the end of the year, you should also be “net zero”. If you made more electricity than you used, Pacific Power will donate those credits to a low-income household at the end of the year.
What if I use more electricity than my system produces each year?
In this case, you will be charged for using that electricity and you will see an amount owed on your electricity bill. We try to size your system based on how much electricity you have used in the prior 12 months. We also try to anticipate any increased electrical needs in the near future such as putting in a hot tub, getting an electric vehicle, or switching your gas furnace out for mini splits. Some people end up using more electricity after installing solar panels, just due to the fact that they aren’t being as diligent about saving electricity by turning off lights or keeping the thermostat set lower.
If you decide that you’ll need more power from your solar power system, please give us a call or fill out our online form. We’d be happy to give you a free assessment for adding more solar capacity at your home or business.