Understanding Net Metering and Your Utility Bill
One of the most common questions solar customers have after their system goes live is: why do I still have an electric bill? The answer lies in understanding how net metering works — and how it's different from simply "going off the grid."
What Is Net Metering?
Net metering is a billing arrangement between you and your utility company.
How it works:
- When your solar system produces more electricity than your home is using → excess flows back to the grid → utility credits your account
- When your system produces less than you need (night, cloudy days, high usage) → you draw from the grid → credits offset what you owe
Think of it like a bank account:
- 💰 Deposit energy when you have surplus
- 💳 Withdraw energy when you need it
Retail Rate Credits
Most Venture Home customers are on true net metering, which means your excess energy is credited at or near the full retail rate of electricity — the same rate you'd pay to buy it.
The more your system produces relative to your usage, the lower your bill will be.
How Credits Work Month to Month
Credit Rollover
In nearly all states and utilities Venture Home serves, net metering credits roll over from month to month.
Why this matters:
- Your system is designed to overproduce in spring and summer
- You build up a bank of credits
- Those credits offset higher winter bills when production naturally drops
What to expect:
- ☀️ Summer: Low or even zero electricity bill (building credits)
- 🍂 Fall: Drawing down credits
- ❄️ Winter: Using accumulated credits
- 🌸 Spring: Starting to build credits again
Annual True-Up vs. Indefinite Rollover
Different utilities handle excess credits differently:
Annual True-Up (Cash-Out)
How it works: Once per year, any remaining excess credits are paid out to you at a lower rate.
Utilities with annual true-up:
- PSEG (New Jersey)
- BGE (Maryland)
Payment rate: Wholesale or commodity rate (lower than retail)
Indefinite Rollover (No Cash-Out)
How it works: Credits roll forward indefinitely with no annual cash-out.
Utilities with indefinite rollover:
- ConEdison (New York)
- Eversource (Massachusetts)
- Rhode Island Energy
Benefit: Credits accumulate for future use
Which Applies to You?
Your specific utility's policy determines which system you have. Check your utility bill or contact Customer Success if you're unsure.
Connecticut Customers: How Netting Works
If you are a customer of Eversource CT or United Illuminating in Connecticut, your utility uses a slightly different structure called netting rather than traditional net metering.
How Netting Differs
| Feature | Traditional Net Metering | Connecticut Netting |
|---|---|---|
| Credit type | kWh (kilowatt-hours) | Monetary ($) |
| Credit value | Full retail rate | Lower set rate |
| What it offsets | Future electricity usage | Bill balance |
The process:
- Your excess generation is converted to a monetary credit each month
- Credit value is based on a set rate (lower than full retail)
- Credits apply to your bill balance and help offset what you owe
- Economics differ slightly from true net metering in other states
💡 Bottom line: You still save money with solar in Connecticut — the mechanism is just slightly different.
Why You Will Still Receive a Monthly Bill
Even with a well-performing solar system, you will almost always receive a monthly electric bill. This is normal.
Fixed Monthly Fees
Every utility charges fixed monthly fees — sometimes called:
- Customer charge
- Delivery charge
- Basic service charge
Important: These cannot be offset with solar credits regardless of how much your system produces.
Variable Charges
In months where your consumption exceeds your production, you will owe the difference.
Example:
- Hot summer day with AC running constantly
- System produces 30 kWh
- Home uses 50 kWh
- You pay for 20 kWh from grid (minus any accumulated credits)
Your Goal With Solar
Not to eliminate your bill entirely, but to significantly reduce it over the course of a year.
Most customers see:
- ✅ Annual electricity costs drop substantially
- ✅ Individual monthly bills vary by season
- ✅ Summer surplus helps offset winter shortfalls
Understanding Your Bill
Typical Bill Components
| Line Item | What It Is | Offset by Solar? |
|---|---|---|
| Electricity Supply | Power generation cost | ✅ Yes |
| Delivery Charges | Transport power to home | ❌ No (usually) |
| Customer Charge | Fixed monthly fee | ❌ No |
| Taxes & Fees | Various regulatory fees | ❌ Partial |
| Solar Credits | Net metering credits | ✅ Applied as negative |
Reading Your Bill
Look for:
- "Net metering credit" or "solar credit" line
- kWh generated (may be shown separately)
- kWh consumed from grid
- Credit balance (if your utility shows it)
Still Have Questions?
If something on your utility bill looks unexpected or confusing, reach out to our support team.
We can:
- ✓ Review your production history
- ✓ Help you understand how your credits are being applied
- ✓ Explain your specific utility's net metering policy
- ✓ Verify your system is performing as expected
Contact Customer Success:
- Phone: 800-203-4158
- Email: Via the Venture Home app
- Webchat: Available on our website during business hours
Related Articles
- [[solar-utility-bill|How Will Solar Change My Utility Bill?]]
- [[check-system-performance|How to Check Your System's Performance]]
- [[production-low|My Production Seems Low — What's Going On?]]
- [[awaiting-pto|Post-Install: Awaiting Permission to Operate]]
Quick Reference
| Question | Answer |
|---|---|
| Why do I still have a bill? | Fixed fees + grid usage when solar doesn't cover 100% |
| Do credits expire? | Depends on utility — some annual true-up, some roll forever |
| Is Connecticut different? | Yes — uses "netting" (monetary credits, not kWh) |
| Will I ever get paid for excess? | Some utilities pay wholesale rate annually |
| Why is my bill higher in winter? | Lower solar production + higher usage (heating) |
| How do I know it's working? | Check monitoring app for production data |
Remember: Net metering is like a bank account for energy — deposit in summer, withdraw in winter, and watch your annual costs drop!