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BEST UTILITY COMPANIES FOR NET METERING IN PENNSYLVANIA
In Pennsylvania, several utilities offer net metering programs, but the best ones typically depend on the customer’s utility provider, the size of the solar system, and the specific needs of the customer. Below is a breakdown of the top net metering programs in Pennsylvania, highlighting the benefits they provide to residential and commercial solar system owners
PECO Energy - Net Metering Program
Program Overview
PECO Energy, serving the Philadelphia area, also offers net metering for solar customers. Like PPL, it credits customers at the retail rate for any surplus energy sent to the grid.
Benefits
- Retail Rate for Excess Power: Customers are credited for the electricity they send back to the grid at the retail electricity rate.
- Annual Settlement: Unused credits are carried forward to the next billing cycle, but any leftover credits at the end of the year are paid at the “price-to-compare” rate.
- No Extra Fees: PECO does not charge additional fees for net metering, which keeps the program financially accessible.
Who it’s Best for
Homeowners in Philadelphia Area: Ideal for residential solar users in PECO’s service area, who want to offset energy costs with minimal additional fees.
PPL Electric Utilities - Net Metering Program
Program Overview
PPL Electric Utilities, serving a large portion of eastern Pennsylvania, offers net metering to both residential and commercial solar customers.Customers can generate excess electricity from their solar systems, which is fed back into the grid, and receive credits on their utility bills at the retail electricity rate.
Benefits
- Retail Rate Credits: Excess energy generated by the solar system is credited to the customer’s account at the retail electricity rate, which is typically higher than the wholesale rate.
- Annual Reconciliation: Any unused credits are rolled over to the next year at a lower “price-to-compare” rate (the avoided cost of purchasing power from the grid).
- Incentive Compatibility: The program works alongside Pennsylvania’s Solar Renewable Energy Credit (SREC) market, meaning that solar system owners can also benefit from selling SRECs.
Who it’s Best for
Residential and Small Commercial Customers: Those in the PPL service area looking for straightforward net metering and potential for long-term savings.
Penelec (FirstEnergy)
Program Overview
Penelec, part of the FirstEnergy Corporation, serves areas in northwestern Pennsylvania. Penelec offers net metering to both residential and commercial customers with solar systems.
Benefits
- Energy Credits at Retail Rates: Excess electricity generated by solar systems is credited to the customer’s bill at the retail rate.
- Annual Credit Roll Over: Unused credits roll over to the next year at a lower rate (the "price-to-compare" rate).
- No Upfront Cost for Participation: There is no fee for participating in the net metering program, making it financially attractive for customers.
Who it’s Best for
Residential and Small Commercial Solar Users in Penelec’s Service Area: Those in northwestern Pennsylvania who want to maximize savings without paying additional fees.
Met-Ed (FirstEnergy)
Program Overview
Met-Ed, another FirstEnergy subsidiary, provides net metering for customers with solar systems in central and southeastern Pennsylvania.
Benefits
- Retail Credits for Excess Power: Customers can earn credits for any excess electricity fed back to the grid at the retail rate.
- Annual Credit Roll Over: Unused credits at the end of the year are paid at the price-to-compare rate, which is generally lower than the retail rate.
- Incentive Integration: Solar customers can also benefit from selling Solar Renewable Energy Credits (SRECs) to utilities to meet their renewable energy requirements.
Who it’s Best for
Homeowners and Small Business Owners in Central and Southeastern PA: For those who want net metering with the added option to sell SRECs for additional revenue.
West Penn Power (FirstEnergy)
Program Overview
West Penn Power serves areas in southwestern Pennsylvania, including Pittsburgh. The company offers net metering to residential and commercial solar customers.
Benefits
- Retail Rate for Excess Energy: Excess electricity is credited at the retail rate, offering valuable savings for solar customers.
- Credits Roll Over: At the end of the billing cycle, unused credits roll over to the next year at a reduced "price-to-compare" rate.
- SREC Market Participation: Like other utilities in the FirstEnergy system, West Penn Power customers can sell SRECs to further monetize their solar installations.
Who it’s Best for
Residential and Commercial Solar Users in Southwestern PA: For customers in West Penn Power’s service area who want to benefit from net metering and the additional revenue stream of SRECs.
Allegheny Power (Now part of FirstEnergy)
Program Overview
Now integrated with FirstEnergy’s network, Allegheny Power serves parts of western Pennsylvania and offers net metering for both residential and commercial solar installations.
Benefits
- Credits at Retail Rates: Excess solar power generated by the system is credited at the retail rate, helping solar customers offset their electricity costs.
- Annual Reconciliation: At the end of the billing year, excess credits are converted to a reduced rate.
- SREC Integration: Customers can sell SRECs to utilities to further boost the financial viability of their solar systems.
Who it’s Best for
Western Pennsylvania Solar Customers: Those who are looking for a reliable way to offset energy costs with solar power and participate in the state’s SREC market.
Factors to Consider When Choosing the Best Net Metering Program
- Credit Rate: Utilities that offer retail rate credits for excess solar generation are the most beneficial for customers, as they maximize financial returns.
- Annual Credit Roll-Over: Some utilities may roll over credits at the retail rate, while others do so at a lower rate. A higher roll-over rate increases the value of the net metering program.
- Additional Incentives and Rebates: Consider utilities that offer additional incentives such as rebates or participation in SREC markets, which can add to the financial savings and incentives for installing solar.
- Utility Service Area: Ensure you’re aware of the net metering program in your area. The programs above cover most major utilities, but there are others throughout the state, so check with your local utility provider for specific offerings.
- Long-Term Financial Stability: The net metering programs from major utilities in Pennsylvania are likely to continue in the future, providing stability for homeowners and businesses looking to invest in solar power.