top of page

What is Net Metering?

Net metering is a billing arrangement used by electric utilities that allows residential and commercial customers who generate their own electricity, often through solar panels or other renewable energy sources, to receive credit for any excess electricity they produce and feed back into the grid.

Here's how net metering typically works in Phoenix, Arizona:

  1. Generating Electricity: When you have a solar panel system or another form of distributed energy generation at your property, such as wind turbines, you can generate electricity. This electricity can be used to power your own household or business needs.

  2. Excess Electricity: If your renewable energy system produces more electricity than you're using at any given moment, the surplus electricity is fed back into the grid.

  3. Credit Accumulation: With net metering, you receive credit from your utility for the excess electricity you've generated. This credit can often be used to offset future electricity bills when your renewable energy system isn't producing enough to meet your needs.

  4. Billing and Settlement: At the end of each billing period (usually monthly), your electricity consumption and generation are reconciled. If you've generated more electricity than you've used over the billing period, you'll either receive a credit on your account, which can be carried forward to future months, or you might be paid a certain amount per unit of excess electricity.

Net metering allows customers to effectively "spin their meter backward" when they generate more electricity than they consume, thus potentially reducing or even eliminating their electricity bills. It provides an incentive for individuals and businesses to invest in renewable energy systems, as they can offset their electricity costs and contribute to a more sustainable energy future.

It's worth noting that the specific rules, regulations, and incentives related to net metering can vary significantly from one location to another, as they are often determined by local utility policies and government regulations. Some regions have very supportive net metering policies, while others might have limitations or changes to the program. Here in Maricopa County, there are dramatic differences between the net metering policies offered from Salt River Project and Arizona Public Service.

Consult with one of our solar professionals to learn how to take advantage of this program and start saving today!


bottom of page