The recent extension of the Investment Tax Credit (ITC) means solar projects enjoy a 30% tax credit for upfront costs. If you were on the fence about using solar panels for energy, now is the perfect time to leap.
However, another benefit of using solar power is net metering. It allows you to earn credit from excess energy sent to the electric grid.
States with favorable net metering policies give more returns. Is yours one of them? Read on and learn about the top net metering states:
- California
California has a different management method for time of use (TOU) metering system. Each month, customers pay the netted fee for the electricity pulled from the grid. It also has a connection fee and a two-cent charge for every kWh of power sent to the grid.
By the end of the year, customers get a true-up bill. It determines whether they made more, less, or enough solar power. If the solar panels generate more energy, customers will receive three to four cents per kWh.
This policy makes California one of the best states for net metering. As such, the state has over 31,000 MW of solar capacity.
- North Carolina
North Carolina is one of the favorable states with net metering. After all, it mandates its three major utility companies to offer retail rates. It means customers can get credit at retail prices every month.
When summer begins, any NEG will cancel out with no compensation. It allows customers to start over.
- Florida
Florida residents owning utilities at the investor level meet the state net metering requirements. These will have the full retail rate credit for every NEG. The best part is it will carry on to the following months.
After 12 months, the utility company will pay the customer the avoided-cost rate. It applies to the remaining NEG.
Also, Florida has a net metering capacity limit. Individual systems can’t go over 2 MW. However, it lacks an aggregate cap for the entire utility.
- Texas
The majority of the Lone Star state has a deregulated electricity market. It allows competition, but it’s harder to enforce net metering policies.
For this reason, Texas relies on utility companies to offer fair net metering compensation. The benefits adhere to the usual policies.
You get credit for your solar panels’ extra electricity. When you experience shortages, you can use these instead of paying cash for electricity.
- Oregon
This state’s net metering system lets utility companies come to customer homes. They switch the existing meter for a bidirectional one for free. It tracks the power acquired from the utility and supplied to the grid.
Do you want to maximize your net metering benefits? If so, contact the top solar company in Oregon to learn more.
Learn More Net Metering States Now
We hope you learned the net metering laws by state through our guide. Use these to determine whether you live in the best net metering states.
However, discovering net metering by state is not enough. Consider reading other valuable guides to get the best solar power system today.