How net billing works

Residential solar systems are becoming more attainable, and more homeowners are exploring rooftop solar panels as an additional source for powering their homes. The amount of electricity produced by rooftop solar panels depends on several factors, including your home’s sunlight exposure, energy use habits, and the number of panels installed. During certain times of the day, rooftop solar panels can generate an adequate amount of electricity to power your home.

What is net billing?
Butler Rural Electric Cooperative offers a net billing program, which compensates solar owners for any excess electricity the system produces. If a solar system generates more power than the home requires (typically during peak sunlight hours), the additional electricity can be fed back into the electric grid. In return, the homeowner will receive a credit on their energy bill for the excess energy. This billing arrangement is known as net billing.

How we know how much to credit for the excess power
The cooperative’s meters can track the direction of electricity flow. A kWh register is maintained for each direction and is read by our automatic metering infrastructure, or AMI, system. It’s important to understand the amount of electricity you use does not include the full cost of maintaining grid infrastructure that supports your home year-round. This is why you will typically see charges in addition to electric use that help maintain reliable electric service, such as grid upkeep, transformer upgrades, and system balancing.

Net billing can be especially helpful from spring until fall, as solar production is typically higher during summer months and lower during winter months. It allows solar system owners to earn credits during high-production months or months with lower electric use and plenty of daylight.

Who uses the excess power generated by the solar system?
The electricity produced by rooftop solar doesn’t go directly to your neighbors. The power flows back to the local grid managed by Butler Rural Electric Cooperative. It is then mixed with the cooperative’s other generation sources and distributed to other members.

While generating electricity from the sun (and sending excess power back to the grid) is an exciting opportunity, it’s important to thoroughly research the details before installing solar panels or any other type of small-scale renewable energy system. If you’re considering solar, contact Butler Rural Electric Cooperative first.

Butler Rural Electric Cooperative members who install solar and participate in net billing will need to sign interconnection service agreements, ensure a bi-directional electric meter is installed, show proof of insurance, obtain permits, and more. Our distributed generation manual details these needs. Learn more here. 

In addition to talking with the cooperative before entering any contracts, you should work with a reputable solar vendor to ensure generation estimates are realistic and that your home is equipped for the system.

It’s important to note net billing will not eliminate your energy bill. Even if you generate as much electricity as you use, which is rare, you will continue to be billed for essential services such as grid access, service fees, and other fixed costs that are necessary to maintain a safe and reliable system. If you’re interested in solar or would like to learn more about net billing, Butler Rural Electric Cooperative can help. By connecting with us first, you can gain a better understanding of the solar energy system, billing options, and more.

Community Solar is a great alternative
If you’re hesitant to jump into net billing, Butler Rural Community Solar is a great alternative. Community solar allows you to support renewable energy with no upfront costs and without the hassle of installing solar panels on your property. Learn more about Butler Rural Community Solar here.