what is net metering
Net metering can be a mysterious concept for some. When your solar panels produce more electricity than you use, your meter runs backward, sending the extra energy to the grid. For example, during daylight hours on a sunny day, your panels may generate more power than your household needs, and the surplus goes to the grid.
When your household needs more electricity than your solar panels are producing at that moment (such as on overcast days or at night), you draw power from the grid, and your meter runs forward.
At the end of the month, you’re billed for the net amount of energy used–the difference between what you sent to the grid and what you took from it. For example, if your solar panels deliver 100 kWh to the grid and you used 150 kWh, you’ll be billed for 50 kWh.
net metering laws
Washington law requires utilities to offer net metering until they reach 4% of their peak load from 1996. Once utilities meet this threshold, they can change the rate they pay for surplus solar energy. In late 2023, Puget Sound Energy (PSE) was close to reaching this limit, prompting their request to the Washington Utilities and Trade Commission (UTC) to continue offering net metering at full retail rates. On February 22, 2024, the UTC approved PSE’s extension, with a condition for PSE to complete a cost analysis by the end of 2024. This extension gives customers more transparency and more time (through 2025) to switch to solar. PSE allows net metering for new or modified solar systems until December 31, 2025, or until a new net metering program is introduced, whichever comes later. Learn more about projected changes and why people are switching to solar before the current net metering rates change.