How to: Read Your Net Meter
What is a Net Meter?
Net meters/smart meters or Bi-directional meters are installed by the utility company to measure how much solar energy is being exported into the grid and how much energy is being pulled in from the grid. It is what is responsible for your billing.
Before Solar
Before solar is a single direction meter. It has no power generation, so it does not need to measure anything going out to the grid. Once the solar system is installed, the surplus power produced is exported into the utility grid, spinning the meter backwards, crediting the account. This is often referred to as “selling power” to the utility grid, because you will receive a credit on your utility bill. These credits are used to offset production shortage in other months. Electricity bills are the highest during the summer months because homes are using the most energy: air conditioning, internet, pool, basic electricity, and more. The credits stored from prior months can only save so much with the high energy use.
Once Solar is Installed
Now that you have solar, your panels will be producing energy all year round. However, we here at Solar Me want to ensure you are getting the most out of the products we have installed. We advise calling your utility company to change the net meter anniversary date. It will be beneficial to change the net meter anniversary to February or March.
Why? The excess generation often occurs in spring and fall months; usually March, April, May, sometimes June, October and November. The summer months have high electrical loads being used (such as air conditioners). Whereas winter months have such short days, there is a lack of solar energy available.
Example: A home has natural gas heat for the winter. If your permission to operate from your solar installation was July 7th, that is the day any excess electricity is cleared from your utility account, and it will restart. If you had 3,234 kwh “banked” (that is the term used on your utility bill for excess solar energy credited to your account) from the spring, on July 7th, the utility company will cut you a check for roughly $194 and reset your account. If the next month your home consumed 2,647 kwh, but only generated 1800 kwh, you would get a bill from the utility company for about $130 or so because you cleared out your “banked” kwh. Therefore, if your anniversary date was reset, you would not have a utility bill and still have another 2,400 kwh banked for the next summer month.
This is merely a suggestion to help offset utility costs for customers who have systems designed for 100% electricity offset. This may not affect every customer, but it is important to know when your anniversary date is. If you would like to maximize your net metering, take advantage of the one-time anniversary reset that the utility company allows for.
Interested in installing solar or an EV charger? Click here for $500 cash back on solar installation! Just fill in your info and Solar Me will get right back to you.
Written by Caroline Kopko & Bill Maier | November 2022
