Solar ‘Net-Metering’ in Pa. Could Be Under Scrutiny

A key policy that has supported the growth of solar energy across the state could be a target of scrutiny in the state Legislature in the coming months. Consideration of several pending energy bills could revive a stalled effort earlier this year to require new regulations on net metering, a practice that allows homeowners with solar power to receive credits for excess power they generate and feed back into the grid.

For many homeowners and businesses that have invested in solar panels, net metering has been a crucial financial incentive. Under the current system, customers are credited at the full retail rate for any excess electricity they send to the grid, which can significantly reduce energy bills. However, some legislators and organizations argue that the policy is unfair to non-solar customers and imposes hidden costs on the utility system.

Net metering is a policy that compensates homeowners and businesses with solar panels for the surplus electricity they produce. For every kilowatt-hour (kWh) of energy a solar system generates and feeds back into the grid, the customer receives a credit that can offset their utility bill. This creates a direct financial benefit to the solar customer while contributing to the local power supply.

The system has been widely praised for encouraging renewable energy adoption, reducing electricity costs, and supporting environmental goals. In Pennsylvania, net metering has helped the state become one of the leaders in solar energy adoption in the region, allowing many households to reduce their reliance on traditional utility power.

 During consideration of a bill in March that would authorize the release of $156 million in federal Solar for All funding, Rep. Craig Williams introduced an amendment that would require the state Public Utility Commission to “promulgate regulations providing for the protection of a ratepayer who has not participated in the Solar for All program.”

Critics of net metering claim it shifts the financial burden for maintaining the electric grid onto non-solar customers. Since utilities make less revenue from customers with solar systems, they may raise rates for everyone else to make up for the loss, resulting in an unfair “cost shift” that disproportionately impacts low-income and non-solar households.

Utilities and lobbying groups have also voiced concerns about the financial impact of net metering. They argue that the credits given to solar users can reduce the overall funds available for maintaining the grid and providing reliable service to all customers.

If net metering was limited or eliminated, it would disincentive solar installations, as fewer residents and businesses would be able to justify the upfront costs. Advocates argue that net metering is essential to helping Pennsylvania meet its renewable energy targets and combat climate change. They also point out that solar energy benefits everyone by reducing strain on the grid and lowering overall energy consumption.

It is important for Pennsylvania residents to understand the implications of a change in this policy in relation to energy equity, sustainability, and economic growth as the debate continues.