Net metering is an electricity billing mechanism that allows consumers who generate some or all of their own electricity to use that electricity anytime, instead of when it is generated. This is particularly important with renewable energy sources like wind and solar, which are non-dispatchable. Monthly net metering allows consumers to use solar power generated during the day at night, or wind from a windy day later in the month. Annual net metering rolls over a net kilowatt-hour (kWh) credit to the following month, allowing solar power that was generated in July to be used in December, or wind power from March in August.
Financial incentives for photovoltaics are incentives offered to electricity consumers to install and operate solar-electric generating systems, also known as photovoltaics (PV).
A feed-in tariff is a policy mechanism designed to accelerate investment in renewable energy technologies by offering long-term contracts to renewable energy producers. This means promising renewable energy producers an above-market price and providing price certainty and long-term contracts that help finance renewable energy investments. Typically, FITs award different prices to different sources of renewable energy in order to encourage the development of one technology over another. For example, technologies such as wind power and solar PV are awarded a higher price per kWh than tidal power. FITs often include a "digression": a gradual decrease of the price or tariff in order to follow and encourage technological cost reductions.
Solar power includes solar farms as well as local distributed generation, mostly on rooftops and increasingly from community solar arrays. In 2023, utility-scale solar power generated 164.5 terawatt-hours (TWh), or 3.9% of electricity in the United States. Total solar generation that year, including estimated small-scale photovoltaic generation, was 238 TWh.
A home fuel cell or a residential fuel cell is an electrochemical cell used for primary or backup power generation. They are similar to the larger industrial stationary fuel cells, but built on a smaller scale for residential use. These fuel cells are usually based on combined heat and power (CHP) or micro combined heat and power (m-CHP) technology, generating both power and heated water or air.
Solar power has been growing rapidly in the U.S. state of California because of high insolation, community support, declining solar costs, and a renewable portfolio standard which requires that 60% of California's electricity come from renewable resources by 2030, with 100% by 2045. Much of this is expected to come from solar power via photovoltaic facilities or concentrated solar power facilities.
New Jersey has over 4,700 MW of installed solar power capacity as of January 2024, which provides more than 7% of the state's electricity consumption. The's state's growth of solar power is aided by a renewable portfolio standard that requires that 22.5% of New Jersey's electricity come from renewable resources by 2021 and 50% by 2030, by incentives provided for generation of solar power, and by one of the most favorable net metering standards in the country, allowing customers of any size array to use net metering, although generation may not exceed annual demand. As of 2018, New Jersey has the sixth-largest installed solar capacity of all U.S. states and the largest installed solar capacity of the Northeastern States.
Solar Renewable Energy Certificates (SRECs) or Solar Renewable Energy Credits, are a form of Renewable Energy Certificate or "green tag" existing in the United States of America. SRECs exist in states that have Renewable Portfolio Standard (RPS) legislation with specific requirements for solar energy, usually referred to as a "solar carve-out". The additional income received from selling SRECs increases the financial value of a solar investment and assists with the financing of solar technology. In conjunction with state and federal incentives, solar system owners can recover their investment in solar by selling their SRECs through spot market sales or long-term sales, both described below.
A community solar project, farm or garden is a solar power installation that accepts capital from and provides output credit and tax benefits to multiple customers, including individuals, businesses, nonprofits, and other investors. Participants typically invest in or subscribe to a certain kW capacity or kWh generation of remote electrical production. The project's power output is credited to investors or subscribers in proportion to their investment, with adjustments to reflect ongoing changes in capacity, technology, costs and electricity rates. Community solar provides direct access to the renewable energy to customers who cannot install it themselves. Companies, cooperatives, governments or non-profits operate the systems.
Net metering is a policy by many states in the United States designed to help the adoption of renewable energy. Net metering was pioneered in the United States as a way to allow solar and wind to provide electricity whenever available and allow use of that electricity whenever it was needed, beginning with utilities in Idaho in 1980, and in Arizona in 1981. In 1983, Minnesota passed the first state net metering law. As of March 2015, 44 states and Washington, D.C. have developed mandatory net metering rules for at least some utilities. However, although the states' rules are clear, few utilities actually compensate at full retail rates.
Solar power in Florida has been increasing, as the cost of solar power systems using photovoltaics (PV) has decreased in recent years. Florida has low electricity costs compared with other states, which makes individual solar investment less attractive. Florida ranks ninth nationally in solar resource strength according to the National Renewable Energy Laboratory and tenth in solar generation by the Solar Energy Industries Association.
Solar power in Maine on rooftops, utilizing 6,300 megawatts (MW) of solar panels, can provide 60% of the electricity used in Maine according to a 2016 U.S. Department of Energy study. Maine and Vermont are tied for the second highest rooftop solar potential in the country, only behind the state of California. A 2020 estimate suggests that a typical 5.6 kilowatt (kW) residential system will pay for itself in 6-7 years and generate a profit of $45,000 over the rest of its 25-year life from the tax credits and utility savings.
Solar power in New Hampshire provides a small percentage of the state's electricity. State renewable requirements and declining prices have led to some installations. Photovoltaics on rooftops can provide 53.4% of all electricity used in New Hampshire, from 5,300 MW of solar panels, and 72% of the electricity used in Concord, New Hampshire. A 2016 estimate suggests that a typical 5 kW system costing $25,000 before credits and utility savings will pay for itself in 9 years, and generate a profit of $34,196 over the rest of its 25-year life. A loan or lease provides a net savings each year, including the first year. New Hampshire has a rebate program which pays $0.75/W for residential systems up to 5 kW, for up to 50% of the system cost, up to $3,750. However, New Hampshire's solar installation lagged behind nearby states such as Vermont and New York, which in 2013 had 10 times and 25 times more solar, respectively.
Solar power in Wisconsin In 2026, Wisconsin rooftops can accommodate approximately 37 GWs of solar capacity and produce 44,183 GWh of electricity, nearly 70% of the statewide generation in 2019. Net metering is available for systems up to at least 20 kW, and excess generation is credited at retail rate to customers next bill. Some utilities allow net metering up to 100 kW. For Xcel customers, kilowatt credits are rolled over monthly and are reconciled annually at avoided cost. Best practices recommend no limits, either individually or aggregate, and perpetual roll over of kilowatt credits.
Solar power in Pennsylvania currently provides less than 1% of the state's electricity, but there are many policies in place to regulate and incentivize its use. Pennsylvania mandates the use of solar power through a renewable portfolio standard, which requires a percentage of electricity from each providers to come from solar, and net metering, which compensates small-scale solar generation through net metering. By 2021, Pennsylvania was required to have 0.5% of its electricity from solar. Their following goal is 10% by 2030. Solar power could theoretically provide over 30% of the state's electricity, but growth in solar generation has slowed due to a reduction in solar grants and the low price of solar energy credits. Efforts have also seen blowback from citizens, most notably from Mount Joy Township. Although, Pennsylvania has ruled solar as a legal use, meaning local governments can only restrict size and placement, but can't disband the projects.
The United States state of Arkansas is a significant producer of natural gas and a minor producer of petroleum.
Net metering in Nevada is a public policy and political issue surrounding the rates that Nevada public utilities are required to pay to purchase excess energy produced by electric customers who generate their own electricity, such as through rooftop solar panels. The issue centers around the question paying solar customers the retail or wholesale rate for the generated electricity.
Net metering in Arizona is a public policy and political issue regarding the rates that Arizona utility companies pay solar customers sell excess energy back to the electrical grid. The issue has two political sides: utility companies that to pay solar customers the "wholesale rate" for their excess electricity, and solar panel installers and solar customers who want utility companies to pay the "retail rate".
Net metering in Michigan was a state program that allowed utility customers to develop renewable energy generation projects on-site at their home or business to meet their own energy needs and reduce their electric bill. As of the end of 2015, Michigan had approximately 2,000 net metering customers. The net metering program was replaced with a inflow/outflow program which charges retail rate for grid energy used and pays for excess sent to the grid at a cost-avoided rate. This cost-avoided rate is much lower than the retail rate and each utility must have their price approved by the state utility board in their rate case.
