Net Metering in Pennsylvania
Pennsylvania law requires all investor-owned electric utilities to offer net metering. Here's how the program works and what it means for your solar investment.
Get Your Free QuoteHow Net Metering Works in PA
Your Panels Produce Energy
During daylight hours, your solar panels generate electricity. Your home uses this energy first, reducing what you need to draw from the grid.
Excess Energy Goes to the Grid
When your panels produce more than your home needs, the surplus flows to the utility grid. Your bi-directional meter tracks this outflow.
You Earn Credits
For every kilowatt-hour of excess energy you send to the grid, you receive a credit on your utility bill. These credits offset the electricity you draw from the grid during evenings, cloudy days, or high-usage periods.
Annual True-Up
At the end of your 12-month billing cycle, your utility reconciles any remaining credits. Excess credits get paid out at the price-to-compare rate. Sizing your system right is the way to get the most out of net metering.
Act 213 and Your Rights
Pennsylvania's Alternative Energy Portfolio Standards Act (Act 213) established the legal framework for net metering in the state. Under this law, all investor-owned electric distribution companies must offer net metering to customers who generate electricity from solar and other qualifying sources.
Residential systems up to 50 kilowatts are eligible. The utility must provide a bi-directional meter at no additional cost and process your interconnection application within a defined timeline.
Credits are applied at the full retail rate during the billing period. At the annual true-up, excess credits are compensated at the price-to-compare rate, which reflects the generation portion of your bill.
How It Affects Your Bill
- Customer Charge
A fixed monthly fee that remains on your bill regardless of solar production. This is typically a small amount.
- Distribution Charges
Fees for maintaining the grid infrastructure. These are reduced but not fully eliminated by net metering.
- Generation Charges
The cost of the electricity itself. This is the portion most affected by net metering credits and is often reduced to zero during high-production months.
- Net Metering Credits
Credits appear as a line item on your bill, offsetting the generation charges. Unused credits carry forward to the next month.
PA Utilities with Net Metering
Duquesne Light
Pittsburgh and Allegheny/Beaver counties
PECO
Philadelphia and southeastern Pennsylvania
PPL Electric
Eastern and central Pennsylvania
Penelec
Northern, central, and western Pennsylvania
Met-Ed
Eastern Pennsylvania and parts of the Poconos
Penn Power
Southwest Pennsylvania near the Ohio border
PA Net Metering at a Glance
Common Questions
See How Net Metering Works for Your Home
Get a free quote with a detailed breakdown of how net metering credits will apply to your Pennsylvania utility bill.