What is net-metering?

Net-metering is a special agreement between you and your electric utility. For example, if your solar system product more electricity than you can use during the day, your meter will run backwards! The excess electricity that you have will generate a credit on your utility account under such an agreement. At night when your solar system does not generate electricity, you will use the credit upon consuming electricity received from the utility.

Your electric meter tracts the difference between the amount of electricity you receive from the utility and the amount of electricity you generate from the solar system. The monthly statements sent by the utility will show the net amount of electricity consumed or produced during the month. Credits and usage will vary from month to month. Sunny months lead to more credits but these will be used up in cloudy months.

Credits usually accumulate for up to 12 months. Most utilities are not required to pay you for excess electricity or unused credits so make sure your system is sized appropriately to cover the energy requirements in your home. Please note that energy cooperatives or REMCs are not required to offer net-metering in Indiana, though there is a net-metering policy for utilities. Currently, efforts are being made to improve net-metering in Indiana. In Kentucky, there is also a net-metering policy but was not a requirement for municipals. One of our cutomers had to challenge the Frankfort Plant Board prior to us installing her solar system for her in KY (Read more). There is now a net-metering policy in Franfort, KY.