Have I misunderstood this?

[Robandodette]

We had our solar panels fitted in 2014. Since then we have believed that we get paid for generated power, whether we use it or not. With that in mind, we use our appliances when we are generating a decent amount on the assumption that as long as we don't use more than we are generate, we would not be charged at all. Then I discussed with a friend that couldn't get his head around that concept and now I am thinking I may have misunderstood all this time. Please could anyone let me know, do I get paid for the. Amount generated whether I use it or not,.
thanks

[azdave]

What does the grid-tie contract with your POCO say? Not all agreements the same. I get account credit to use the extra power at full value on a later date however, anything not used by the end of the fiscal year is paid out at wholesale rates so it's a much better value for me to use the extra power than to save it to get a small cash payment.

[J.P.M.]

Does your utility offer net metering ? If so, chances are you're probably on it. In effect, it treats the grid sort of like a huge storage device. Your array puts power in and you take it out as needed. If you take more from the grid than you put in for any billing period, you are charged the going rate. Surplus and use usually roll over month/month for 12 months and then your account is balanced out with payment going to the appropriate side. If you generate more than you draw from the grid you are usually paid much less per kWh that you pay for a kWh.

Net Energy Metering ("NEM") varies slightly from one utility to the next.
For details about net metering for your specific utility, and if you are on it, contact that utility.

[Robandodette]

Thank you for your reply. I still don't understand. So if I am generating 3kw and the house is using 3kw, then does that mean that I wouldn't be paying anything as long as don't use more than I am generating?

[SunEagle]

Thank you for your reply. I still don't understand. So if I am generating 3kw and the house is using 3kw, then does that mean that I wouldn't be paying anything as long as don't use more than I am generating?

First off you generate and consume kWh not kW.

Second if and only if you have a contract with your POCO for NET metering where they purchase a kWh from you for the same price you purchase it from them then in most cases if you consume what you generate your bill should not reflect any consumption costs but may show a connection fee, taxes or any other additives that the POCO has required.

[J.P.M.]

Robandodette:

Call your utility and get it from the horse's mouth. They can explain it to you better than I can.

[Robandodette]

Blimey, it's more complicated than I thought. Thank you for your reply though

[J.P.M.]

Blimey, it's more complicated than I thought. Thank you for your reply though

Indeed. I'm not trying to be a hardass, but the best source of information about any arrangements you have with your power company is that power company.
Or, google is your friend for a lot of general information about net metering.

[Robandodette]

Thank you for your advice

[J.P.M.]

Thank you for your advice

You are most welcome. I'd wager it'll be of some use.

[ktran1]

look at your POCO bill. Do you have NEM mention in your bill? Or do you see true up? do you pay for your electric per month? Check how may kWH usage per month too.

[sdold]

Thank you for your reply. I still don't understand. So if I am generating 3kw and the house is using 3kw, then does that mean that I wouldn't be paying anything as long as don't use more than I am generating?

Normally the electric meter moves forward when you take power from the grid. With solar it also moves backward when you generate more than you're using and put power back into the grid. In the scenario above, if you're both generating and using 3kw, the meter doesn't move since no power is flowing to or from the grid.

Once a year they read the meter and if it's moved forward you pay them, and if it's moved backward they pay you.

That's slightly simplified, but that's how net metering works.

[Robandodette]

Thank you

[User007]

Is there a way to avail reimbursement also?