---
title: "Net Metering in Pennsylvania"
description: "How Pennsylvania net metering works under Act 213, eligible utilities, billing impact, and credit rules for residential solar."
url: https://www.lifestylesolar.com/net-metering-pennsylvania
type: marketing
---
# Net Metering in Pennsylvania

Pennsylvania's Alternative Energy Portfolio Standards Act (Act 213) requires all investor-owned electric distribution companies to offer net metering to customers who generate electricity from solar and other qualifying sources.

## How net metering works in PA

1. **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.
2. **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.
3. **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.
4. **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

Under Act 213, all investor-owned electric distribution companies must offer net metering to qualifying solar customers.

- **Residential systems up to 50 kW are eligible**
- **The utility must provide a bi-directional meter at no additional cost**
- **The utility must process your interconnection application within a defined timeline**
- **Credits apply at the full retail rate during the billing period**
- **Excess credits at annual true-up are compensated at the price-to-compare rate** (the generation portion of your bill)

## How net metering affects your bill

- **Customer charge**, a fixed monthly fee that remains on your bill regardless of solar production. Typically a small amount.
- **Distribution charges**, fees for maintaining the grid infrastructure. Reduced but not fully eliminated by net metering.
- **Generation charges**, the cost of the electricity itself. The portion most affected by net metering credits, often reduced to zero during high-production months.
- **Net metering credits**, appear as a line item on your bill, offsetting generation charges. Unused credits carry forward to the next month.

## Participating utilities

- **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

- Credits applied at full retail rate during billing period
- Residential systems up to 50 kW are eligible
- Bi-directional meter provided at no cost
- Credits roll forward month to month
- Annual true-up at end of 12-month cycle
- All investor-owned utilities required to participate

[Get a free quote →](/get-a-quote)

## Frequently asked questions

### How does net metering work in Pennsylvania?

When your solar system produces more electricity than your home uses, the excess is sent to the grid and you receive a kilowatt-hour credit on your utility bill. These credits offset your usage during times when your panels produce less energy.

### Which Pennsylvania utilities offer net metering?

All investor-owned electric utilities in Pennsylvania are required to offer net metering under Act 213. This includes Duquesne Light, PECO, PPL Electric, Penelec, Met-Ed, and Penn Power.

### What happens to excess credits at the end of the year in PA?

Pennsylvania uses a 12-month rolling cycle. At the annual true-up, any remaining excess credits are compensated at the utility's price-to-compare rate, which is typically lower than the full retail rate. That said, every system we design is custom-sized to match your household's actual energy usage, so you're not overproducing and losing value at the lower payout. The goal is to offset your bill, not generate a big surplus that gets paid out at a discount.