Top Takeaways:
1-to-1 Net Metering
Competitive Electric Suppliers not required to provide net metering credits
1-to-1 Net Metering
Pennsylvania's net metering policy requires all major utilities to provide 1-to-1 net metering as long as you receive full-service (supply and distribution) from the utility. Net metering is when the utility subtracts or "nets" production and consumption used in the same monthly billing cycle favorably at the same price per kWh (kilowatt-hour) they charge, called the retail rate.
Each kilowatt-hour (kWh) the solar system produces will first power your home, and any excess solar energy passed through the utility meter to the grid will receive a kWh credit on your electric bill. Production and consumption will net 1-to-1 at the same $/kWh retail rate the utility charges you for electricity. Any excess kWh credits will rollover month to month until you need them.
Third Party Electric Suppliers
Pennsylvania utilities are not required to provide net metering credits for customers with a Competitive Electric Supplier. The supply and transmission charges on your electric bill may not be credited. If you have an alternate supplier, Palmetto LightReach recommends you break your supply contract and return to the local, distribution utility for full service.
Net Metering Example
Source: PPL Electric
Remaining Utility Bill
Even if solar provides 100% of your electricity needs, you will still have a utility bill to recover fixed customer charges that all consumers contribute to operate the grid ($10-$20 per month). In addition, you will have a separate LightReach bill for the solar system production.
Annual Cash Out
After the May billing cycle, your utility is required by law to cash out (usually a check) any remaining credits at their average Price to Compare, which is about half the retail rate as it only includes supply and transmission rates not the distribution cost.
