What happens when a solar PV system produces a surplus of electricity?
Depending on the size of the solar installation and the owner’s usage, a system may produce more electricity than a residence or small business uses during certain months. Most grid-tried solar arrays at homes or small businesses in this country are installed with a “net metering” agreement between the owner and the utility. If the system produces more electricity than is consumed, the surplus is credited to the owner’s account. The rate used for the credit varies, depending on the utility. In some cases, it may be equal to the highest retail electricity rate that the utility charges per kilowatt-hour. The credit is then applied to the account during a billing period in which the owner uses more electricity than the solar system supplies. The “net” amount is what is left after subtracting the system’s production from the owner’s usage. In most cases, the “net metering” agreement covers a full year of production, although billing adjustments may occur from month to month. Some solar own
