Ohio Net Metering
In sunny peak months in Ohio, solar systems often produce more energy than a home can consume. Have you ever wondered what happens to this excess electricity? Or how you, the homeowner, benefit from the extra energy your solar energy system produces? In Ohio, Net Metering is the process that accounts for this difference in production & use.
Net metering allows you to store the energy you produce in the electric grid, in the form of credits. When you produce more energy than you need, excess electricity travels back into the power grid. Energy sent back into the grid goes to power your neighbors’ homes. The State of Ohio requires that the utility company credit you for the energy you produced and send along. These credits appear on your monthly electric bill to help you keep track.
During sunny summer months, when your solar system is producing more than the energy you are using, you bank up credits. During the winter months, your home uses more energy than your solar system produces, and you use up the credits you’ve earned.
You will be charged for the energy you take use from the traditional electric grid (when your solar panels aren’t producing). You can pay for that extra energy using the credits you accrue during times your solar system is producing more energy than you are using.
Know that net metering rules change from state to state. This description of net metering applies to the Ohio net metering rules in the state of Ohio. Some states may be similar, but we always recommend finding local information because solar rules and regulations vary so widely.
What is Net Metering?
An electricity billing mechanism that allows consumers who generate some or all of their own electricity to use that electricity anytime, instead of when it is generated.
- Homeowners are credited for pushing their excess solar power onto the local grid
- Credits are used to offset the grid energy they use when their panels aren’t meeting their household electricity demand
- Ensure you get credit for the power you produce that flows onto the grid
Why is net metering important?
Net metering increases the economic benefit of solar power by crediting you for the power your solar energy system produces. The amount of energy you produce and use will vary over the course of the year. Net metering helps you account for this difference by crediting you for the excess electricity your panels produce so you can use it later.
Your utility benefits from net metering because electricity is generated so close to where it is consumed. This decreases the amount of electricity lost when power is transmitted across miles of wires. Additionally, it helps reduce strain on the grid during peak demand times: like on hot, sunny days.
Credits for excess energy (Will I receive payment for the excess energy I produce?)
In Ohio, you’ll get credits to be used on an annual basis to offset the cost of electricity that you take from the grid during times when your solar system is not producing energy. These credits rollover from month to month. Although you don’t get a check or cash back for your excess energy, your utility company will provide you with credits that will offset your future electricity usage. Credits will roll over into the next month and can decrease your electricity bill. This way, you can make sure you solar system continues to benefit from you all year round.
Eligibility Criteria for Net Metering in Ohio
To qualify for net metering, you must meet these requirements:
- System must be Grid- connected: Key to integrating net metering
- System size compliance: system can’t exceed your property’s energy needs
- Utility Provider participation
Credited Rates – At what rate do utility companies credit me for my usage?
Electric companies credit you at a net excess generation rate. The State of Ohio’s net metering policy does not require utilities to credit energy you produce at the full retail rate.
- Retail rate: some electric companies credit at same rate as electricity, however many credit at the wholesale rate of your electricity
- Some utilities roll over unused credits on an annual basis
- System size caps: utilities can cap on total solar capacity which may limit your solar installation size.
These variables vary based on your electric company. This is why it’s important to work with an experienced installer familiar with local utilities and their rules. Your experienced Solar Consultant can help you understand what your utility’s net excess generation rate is.
Can my energy bill be $0?
In many cases, yes!
Although some utility companies charge a fixed monthly fee, net-metering credits can offset the majority of your electricity cost, potentially making your bill $0. However, you may need to pay for the fixed customer charge – this is a set amount that utilities charge no matter how much electricity you use. This is particularly common in rural cooperatives.
Many of our customers have shared their decreased bill or $0 bill paired with Net-metering and in most cases, the main charge on the bill is a fixed customer fee. However, in many cases, you can use credits to pay down the fixed monthly costs. This is particularly common with the larger, investor owned utility companies (AEP, AES, Duke, First Energy). We often see $0 electric bills sent to us by our customers!
How much energy from my electric company will I purchase annually, when I have a solar system?
We don’t design all solar systems to meet 100% of a home’s electric usage over the course of the year. Why? This depends on many factors, but primarily the amount of space a home has for solar panels. Your solar consultant will work with you to design a solar system that makes sense for your home’s annual electricity usage.
How we can help
One of our experienced Solar Consultants will play a vital role in helping you design a system that fits your energy needs and maximizes the benefits of net-metering. They can also guide you through the specifics like rules and rates associated with your electric utility provider, ensuring you get the most of your investment.
