PECO Net Metering Guide
How PECO Net Metering Works for Solar Owners
Pennsylvania has one of the strongest net metering programs in the country. Here is exactly how PECO credits your solar production, what the annual true-up means, and how to size your system to maximize value.
What is net metering?
Net metering is a billing arrangement that lets solar customers send surplus electricity back to the utility grid in exchange for bill credits. When your solar system produces more energy than your home is using — typically on sunny afternoons — the excess flows back through your meter to PECO and shows up as a credit on your next bill. When you draw from the grid (at night, on cloudy days), your credits get used up. Net metering is what makes residential solar financially viable in Pennsylvania.
PECO's 1:1 net metering — what it means in dollars
Pennsylvania law requires PECO to credit residential solar customers at the full retail rate — currently around $0.22 per kWh for most PECO customers. That means every kilowatt-hour your solar system exports is worth exactly the same as every kilowatt-hour you import. There's no haircut, no wholesale rate, no avoided-cost discount during the year.
By contrast, many other states have moved to "net billing" or "avoided cost" structures where exported energy is credited at 30-50% of retail. Pennsylvania still uses true 1:1 net metering, which is one of the biggest reasons solar payback periods here are 8-10 years instead of 12-15.
How credits roll over month to month
Solar production is seasonal. A typical SE PA system overproduces from April through September and underproduces from November through February. PECO net metering handles this automatically — if you produce more than you use in May, the surplus carries forward as a kWh credit on your bill. Those summer credits offset your winter usage. Your bill in any given month equals (kWh used − kWh produced − rollover credits) × your retail rate, plus the fixed customer charge.
The May 31 annual true-up — and why system sizing matters
This is the part most homeowners don't know about.
PECO performs an annual reconciliation on May 31 each year. Any banked credits remaining at that point are cashed out — but at the energy-only "price-to-compare" rate, not the full retail rate. That's typically $0.10-$0.12/kWh, roughly half of what a kWh is worth during the year.
What this means in practice: oversized systems lose value at true-up. If you generate 30% more than you consume each year, that excess gets cashed out at half-price every May 31. Properly sized systems target 95-105% of annual consumption — enough to run your home year-round and roll over reasonable surpluses, but not so much that you're sending PECO free electricity at the energy-only rate. This is one of the most important design decisions in any solar quote.
What net metering does not cover
Two things to understand about your bill, even with net metering:
- Fixed customer charge: PECO charges a monthly customer charge (~$15-$20) regardless of your usage. Net metering doesn't eliminate this — only your variable energy charges.
- Solar doesn't keep your house powered during outages. When the grid goes down, grid-tied solar shuts off automatically for safety. To keep power during outages, you need a battery backup system (Tesla Powerwall, Sigenergy, Enphase, etc.). Learn more about battery backup →
Net metering + PA SRECs = the full PA solar economic picture
Net metering handles the energy side of solar economics. The Pennsylvania SREC program handles the incentive side — separate, additional income paid for the renewable energy you generate. Together, they're what make PA solar one of the strongest residential energy investments in the country.
PECO net metering: frequently asked questions
Does PECO pay cash for excess solar production?+
During the year, no — excess production becomes a kWh credit on your next bill at the full retail rate. At the May 31 annual true-up, any remaining credit balance is cashed out at the energy-only price-to-compare rate (typically $0.10-$0.12/kWh), which is roughly half of the retail rate. This is why properly sizing your system to match (not exceed) your annual consumption is critical.
Will I have a $0 PECO bill with solar?+
Your variable energy charges can be reduced to $0 with a properly sized system, but PECO's fixed monthly customer charge (around $15-$20) will still appear on every bill. Most solar customers see annual electricity costs drop by 80-100% versus pre-solar levels.
How big can my solar system be under PECO net metering?+
Pennsylvania law caps net-metered residential systems at 50 kW DC and limits system size to 110% of your annual electricity consumption. For most households, that's well above what would actually be installed — system sizing is usually limited by your roof space and your goal of avoiding excess production at true-up, not by the regulation.
Do I need a special meter?+
PECO replaces your existing meter with a bi-directional meter when your solar interconnection is approved. The new meter records both energy delivered to your home and energy exported to the grid. There's no charge for the meter swap.
What happens if I move?+
Net metering credits stay with the property's electric account, not with you personally. The new owner inherits the system and continues to receive net metering. This is one reason solar is shown to add measurable resale value.
How long does PECO interconnection approval take?+
PECO typically reviews and approves residential interconnection applications within 4-6 weeks of submission. We handle the entire interconnection paperwork as part of every Pennstar Solar installation.
See exactly what net metering means for your bill
We'll show you a properly sized system that maximizes 1:1 credits without losing value at the May 31 true-up.
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