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What Are Solar Bill Credits? Compensation for Solar Energy

Utility bill credits turn the local electric grid into a solar battery, storing the value of solar energy for later use.

If you have solar panels on your commercial or residential property and produce more electricity than you use, you can sell that electricity to your local utility electric grid in exchange for utility bill credits.

Large-scale solar plants use the same principle to create community solar programs for local businesses and residents. The only difference is that here all the power is injected directly into the grid and the bill credits are distributed to subscribers like yourself.

Different states have different rules for when and how you can claim your utility bill credits, but in general, over 40 states have net metering programs that facilitate bill credits as a solar incentive. At least 19 of those states have encouraged community solar programs through policy and programs that incentivize growth.

How does net metering work?

When you have a commercial solar array on your property, you may produce an excess of electricity that you can sell to your local electric grid. In doing so, your utility bill will receive a credit based on the net amount of kilowatt hours you gave back to the grid.

When you feed electricity into the grid, your energy meter “runs backwards”. On the other hand, if your solar panels don’t produce enough electricity for your needs and you need to buy energy from your local utility, your meter “runs forward” as is the case for people not producing their own electricity.

The bill credits that you build up from selling your solar panel’s excess electricity to the grid can then be pulled during the morning, at night, or during the winter – whenever your solar panels are not producing enough electricity.

In effect, the electric grid becomes a huge solar battery that soaks up excess electricity you produce and gives it back to you when you need it.

Whether you are interested in installing your own solar system or Community Solar and are wondering how net metering, bill credits, or VDER works, OYA Renewables is here to help. Contact us for more information, or send us an email at info@oyarenewables.com and we will be happy to help.

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