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Your Solar Power Bill: Understanding Changes with Net Metering

April 17, 2024 · Patrick Cavanaugh · Solar In Virginia

Here's how to understand your Pepco power bill now that you have a solar power array on your rooftop generating clean energy.

Solar panels on a flat roof in Northwest DC.

Congrats on going solar with Uprise Solar! You’re generating clean energy and likely saving money too. But your Pepco power bill might look different now. Let’s break down what’s changed and how to make the most of your solar investment.

Think of your solar panels like a little power plant. When they make more energy than you’re using, that extra juice doesn’t go to waste. It flows right back into Pepco’s grid, and you earn one-for-one credits for being a clean energy superstar! These credits show up on your bill and reduce the amount you owe.

What Is Net Metering?

Net metering is a billing arrangement with Pepco that allows you to receive credits for the excess solar energy your system produces. Here’s how it works:

  • Your Solar System Produces Power: During daylight hours, your solar panels generate electricity.
  • You Use What You Need: Your home uses this solar energy first to reduce or even eliminate your need to pull power from the grid.
  • Excess Energy Goes Back to the Grid: If your solar panels produce more than your home consumes at any given moment, the extra energy is sent back to the Pepco grid.
  • You Get Credits: Pepco gives you a one-for-one credit for every kilowatt-hour (kWh) of excess power your system sends back to the grid.

Here is a diagram of how solar net metering works:

A diagram of how net metering arrangements work with your power company,

Understanding The Original Terms On Your Pepco Power Bill

You might see energy charges and supply charges. Here’s a simple explanation of those:

  • Energy charges are like paying for the gallons of gas at the pump. It’s your actual electricity use.
  • Supply charges are like a delivery fee for getting the gas to the station. It covers how the electricity is made and sent to you. Supply charges are also known as transmission fees.

Decoding Your New Power Bill

You’ll still see some familiar charges on your Pepco bill, like those delivery charges for keeping the whole grid running smoothly. But now you’ll also see:

  • Current Month Usage: This is the power your system didn’t cover that you used from Pepco, usually at night or when it’s cloudy.
  • Current Month Excess Generation: That’s your excess solar energy sent back to the grid!
  • Net Energy Metering Credits: The value of your extra solar power credits.

Director of Sales Patrick Cavanaugh has solar on his roof; here’s his bill from this past March as an example:

A screenshot of a bill for a house with solar on the roof.

Patrick’s solar array overproduced 257 kWh in March, so he didn’t need to purchase any additional power from Pepco. In April, he needed 669 kWh more than his system produced. Since he had a 257 kWh Pepco credit from March, he only had to pay for 412 kWh for the April billing cycle. Your net metering credit amounts will change from month to month, and as Patrick did, you can apply credits forward to future months. (Check out a picture of his system below!)

The solar array on Uprise sales director Patrick's roof.

Keep in mind that the energy generated and consumed at the same moment won’t show up on your Pepco power bill. Your system generated the energy your house used in real time, meaning Pepco didn’t need to supply it. This translates to direct savings on your bill.

How Can I See How Much Power My System Generated?

  • Enphase App: This is your solar power dashboard! See how much you’re producing and when you use the most electricity, and use that information to make energy-smart decisions. (Scroll down about halfway through our blog post on solar maintenance to learn how to use the Enphase App.)
  • SRECs: Did you purchase your system? You might earn Solar Renewable Energy Certificates, or SRECs, which are like bonus points for clean energy. SRECs were born from a simple idea: to encourage renewable energy by giving it tangible value. You can learn more about the history of SRECs here.

What If My System Overproduces Across The Year?

If you are one of the lucky ones with an overachieving solar array, that’s great news! If you produce more electricity than you use throughout the year, Pepco will cut you a check for all that excess energy you shared. Keep an eye out for your net metering credit check after the new year.

We’ve Got Your Back

At Uprise Solar, we’re not just about installing panels. We want you to master your energy savings! Any questions about your bill or ways to level-up your solar benefits? Just give us a shout! Call us at (202) 750-5718 or email us at info@uprisesolar.com.

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