Solar Net Metering

Solar Net Metering2017-07-13T16:49:27+00:00

Minnesota has one of the nation’s first and strongest Net Metering policies!


Net metering is a billing system that allows for a solar PV system owner to be be credited, or reimbursed, for any unused energy that their system produces and adds to the grid during the daytime.  Most home solar PV systems are still tied into the main electric utility grid.  Understanding net-metering is a key factor in making the most of your solar investment.

Many of us begin flipping on switches and using up electricity before the sun gets much of a chance to rise.  During the early morning, appliances and lighting are likely using more electricity than your home’s PV system can generate, so energy is being pulled from the electric utility’s grid.

By the time you arrive to work, the PV system is feeling the full power of the sun, and more energy is being generated than is being consumed by your home.

If you install a PV system on your home’s rooftop, you may very well generate and put back into the grid more energy than you use.  Net metering is a system designed to encourage private investment and implementation of renewable energy systems, and fair compensation for the value these systems provide all energy consumers.

This energy is put into the grid to be used where it is needed, building up a credit with the electric utility.

As the day progresses, heating and cooling needs may again use up energy more quickly than the PV system can produce.  A cloud (or snowstorm here in Minnesota) may also come along, temporarily decreasing the energy production of your PV system.  Energy is then pulled from the grid again, using up some of the energy credit generated earlier.

Later in the day, the sun may be setting, but our energy demands are not going down!  Lighting, appliances, televisions, and more will continue to use electricity pulled from the grid, using up the energy credit accumulated during the daylight…


Net Metering & Xcel Energy Solar*Rewards Program

Minnesota’s strong net metering policy supports small scale renewable energy production, reimbursing customers at or above the average retail rate.  Many states with net metering reimburse at much lower rates. Minnesota became the first state to enact net metering legislation in 1983, and continues to be a leader in renewable energy.   Here in Minnesota, the electric company pays you the same price that you pay them!

As an additional incentive, the Xcel Solar*Rewards Program pays you an extra $0.08 per kWh produced for the next 10 years, regardless of how much energy you actual use!