How 1:1 Net Metering Works
1:1 Net Metering is a straightforward program that dramatically improves the economics of solar energy for Southeastern PA homeowners. Here's how it works:
- Producing Solar Energy: Your solar panels generate electricity from sunlight. During sunny hours, they often produce more electricity than your home needs.
- Using Energy: You use some of this solar energy to power your home in real time.
- Sending Excess Back: When your solar panels generate more electricity than you can use, the extra energy flows back to the PECO grid.
The "1:1" Part — Why It Matters
For every unit of excess electricity you send back to PECO's grid, you earn a credit for the exact same amount of electricity at the full retail rate. For example, if you send 10 kilowatt-hours (kWh) to the grid, you get 10 kWh of credits worth the full $0.22/kWh retail rate.
When your solar panels aren't producing enough electricity (like at night or on cloudy days), you use these credits to draw electricity from the grid at no additional cost. It's like storing your extra energy with PECO and getting it back later when you need it — essentially a free battery.
Why 1:1 Net Metering Makes PA Solar So Valuable
- Cost Savings: This system can significantly lower or even eliminate your PECO electricity bill because you're effectively using your own solar power even when the sun isn't shining.
- Summer-Winter Balance: Your solar panels overproduce in summer and underproduce in winter. Net metering credits roll over month to month, so your summer surplus offsets your winter shortfall.
- Better Than Many States: California's NEM 3.0 dramatically reduced the value of exported solar energy. Pennsylvania's 1:1 policy means your solar investment is worth significantly more here than in states that have moved to "avoided cost" or reduced-value net metering.
A Simple Example
- Sunny Day: Your home generates 15 kWh, uses 10 kWh, and sends 5 kWh to the grid (earning 5 kWh in credits).
- Cloudy Day: Your home generates 5 kWh, uses 10 kWh, and draws 5 kWh from the grid using your stored credits — at no cost.
Why Going Solar Now Makes Sense
In Pennsylvania, 1:1 net metering is currently the standard. However, as more solar comes online, it's possible this incentive could be curtailed in the future — as it has been in California and other states. While Pennsylvania has historically respected existing interconnection agreements, there is no formal guarantee that current net metering terms will remain unchanged indefinitely. Going solar sooner rather than later means you benefit from today's favorable policy.
Important: The May 31st Annual True-Up
One detail every PECO solar customer should understand: your net metering credits roll over month to month, but PECO performs an annual true-up on May 31st. Any excess credits remaining in your account at that point are cashed out at the energy-only rate — which does not include delivery or transmission charges. This means the payout for excess banked credits is significantly less than the full retail rate you'd receive by using them.
This is why proper system sizing matters. A well-designed system offsets most of your usage throughout the year without building up a large surplus that gets cashed out at a lower rate. We size every system with the May 31st true-up in mind to maximize your return.
Contact Pennstar Solar at 610-900-6405 for a free estimate and to start earning net metering credits from your solar panels.
