Net Metering in Washington: Your Top Questions, Answered
Net metering is jargony and nuanced – yet it is critically important to investing in solar, contested in solar markets across the world, and very likely changing soon here in Washington. Due to that, we decided to make a quick Q&A style blog to clear things up for now.
What is net metering?
Net metering is a key benefit of owning a solar system. When you export power back onto the grid, you’re credited at the retail rate for that power. Those credits build up in a virtual bank. In the Pacific Northwest, most systems build up a large bank of credits over the summer, when the sun is abundant and loads are light, then draw that down over the winter. With net metering, many of our customers are able to offset 80%-100% of their annual usage!
Annual True-up
Currently, excess banked net metering credits on March 31st are given away, with no remuneration. For this reason, we take pains not to overbuild your PV system, unless you foresee increased energy consumption we will not design a system that produces more than you consume annually. An electric bill is very important, even when we’re doing an initial preliminary/remote design.
Time of Use
At the time of this writing, net-metered solar customers are not eligible for the pilot time of use rates that are being rolled out in PSE and Seattle City Light. Time of use simply means that you pay different rates at different times of day. Kilowatt-hours consumed during peak periods cost more.
What is “exported power”?
When a system is producing power, and the building/home is consuming power, the solar energy feeds the home directly. By virtue of this, the building simply purchases less kilowatt-hours (kWhs) from the utility. However, much of the power we produce is not consumed on site, since production is the highest in the middle of the day, in the summer. This excess power then travels through your meter and onto the grid. These excess kWhs are “exported”.
Is net metering still 1:1 in Washington?
Yes. By “1:1” we mean that one kWh is credited at the rate you would pay for it. Under RCW 80.60, the state has a mandated net metering cap that requires utilities to credit solar customers in this manner. The cap has been exceeded by PSE, Avista, and Pacific Power. Seattle City Light is expecting to reach their cap in a few months. All still credit exported solar at the full retail rate, up to 100 kW – which encompasses all residential systems.
Why do I keep hearing it might go away?
Utilities generally want to de-value exported power, potentially depending on the time of day the power is generated. The conversation around net metering centers around the value distributed solar (solar located on a home or building) brings to the utility and society. The state has commissioned a “Value of Solar and Storage” study by the Washington Academy of Sciences, which is due to be released this September. Utilities across the state are awaiting the outcome of this study before designing the next version of net metering, often called “NEM 2.0”.
If the rules change, do I lose what I have now?
No. Net metering policies typically grandfather existing customers into the current program for the long term. If you install before any change takes effect, you keep today’s terms. In the context of rapidly rising electricity prices, this is why it makes more sense than ever to invest in solar soon, if you are able.
What’s the bottom line?
Regardless of how this shakes out, there will very likely never be a better net metering program than the one we have today. If you want to lock in your rate for 25 years and take control of rising electric costs, we recommend doing so sooner than later.
Reach out to us for a free, remote, and detailed quote. Call 206-706-1931, email us, or sign up for our newsletter.
Cheers, Will