How Net Metering Alters Your Electric Bill

What if we told you there’s a policy that will net you a credit on your electric bill for any excess electricity you return to the grid?

It’s called net metering and it’s spectacular. 

Net metering constitutes the difference between the amount of electricity the power grid sends to you, the customer, and the amount of electricity you send back to the grid. Many states implement net metering programs to incentivize solar energy among residential and commercial consumers. Those credits generated via net metering allows customers to enjoy the return on investment in short order—to the tune of tens of thousands of dollars

How Net Metering Works

PV solar arrays are so efficient that they often generate more electricity than a property owner will consume during daylight hours. Net metering ensures that consumers get the full bang for their buck, with the program arranging that you are only billed for the “net” energy used every month. That equates to the difference between the energy produced by your solar energy system and the energy consumed by your property over the monthly billing period

It’s important to remember that this is a state-by-state initiative and there is no national standard for net metering or how it’s implemented. Net metering policies developed by states like Delaware, for example, require utilities to compensate renewable energy sources at retail rates—or the rates that these utilities charge your typical consumer. 

With Delaware’s net metering law, any net excess generation (surplus electricity) you produce is applied to your next bill as a credit at the full retail rate.

The Wide-Ranging Benefits of Net Metering

As we’ve learned, net metering benefits your bottom line, shining a light on financial savings for solar customers. However, its benefits extend beyond cash savings. Net metering also assists the electric grid and the utilities that manage it. As solar customers supply electricity to the grid, those kilowatts are redistributed to nearby customers. 


It’s called net metering and it’s spectacular. 


With more and more customers sending power to the grid through net metering, the grid grows more interconnected, resembling a collection of “microgrids” that supply their own energy with a single substation. This equals less money spent on fossil fuels and a better maintained grid infrastructure. It’s a series of benefits that also results in a more resilient grid, one that better guards against large-scale power outages. 

The Solar Energy Industries Association (SEIA) explains that while utility companies might balk at the very idea of net metering, it’s actually highly beneficial to all involved. 

“Some utilities perceive net metering policies as lost revenue opportunities. In fact, net metering policies create a smoother demand curve for electricity and allow utilities to better manage their peak electricity loads,” says the SEIA. “By encouraging generation near the point of consumption, net metering also reduces the strain on distribution systems and prevents losses in long-distance electricity transmission and distribution.”

Delaware Solar Incentives

Net metering is one of many incentives to investing in solar energy in The First State. Along with SREC programs and Solar Easement laws, net metering can help offset the total cost of installing solar in Delaware

Connect with CEUSA to learn more about
Net metering and what it means for Solar!