Net Metering
How Solar Net Metering Works (and Why Washington’s 1:1 Policy Is So Valuable)
What is Net Metering?
Net metering is the billing structure that allows homeowners with solar panels to receive credit for excess electricity their system produces and sends back to the utility grid.
During sunny months, solar systems often produce more electricity than the home is using at that moment. Instead of that extra energy going to waste, it flows back to the grid and the utility tracks it as a credit on your account. Later, when your system is producing less energy (such as at night or during winter), you use those credits to offset electricity you pull from the grid.
How 1:1 Net Metering Works in Washington
Washington State currently offers full retail 1:1 net metering, which means:
- Every 1 kWh of solar energy you export to the grid earns you 1 kWh credit at the full retail electricity rate.
- You can use the grid as a “virtual battery,” storing excess summer production and using those credits during lower-production months.
Example:
- Your system produces 1,200 kWh in July
- Your home uses 800 kWh
- The extra 400 kWh becomes bill credits
- Those credits offset your electricity use later in the year when production is lower
Why 1:1 Net Metering Is Extremely Valuable
Maximizes Financial Savings
You receive full retail value for your solar production, which significantly improves long-term savings and shortens payback timelines.
Reduces Dependence on Batteries for Cost Savings
The utility grid effectively functions as seasonal energy storage, allowing homeowners to balance production and usage without needing large battery capacity strictly for financial return (though batteries remain valuable for outage backup).
Provides Protection Against Rising Utility Rates
The credits you earn directly offset future electricity costs, helping protect you from long-term rate increases.
Why Timing Matters — Grandfathering Protection
Washington utilities are currently required to offer 1:1 net metering, but the program is approaching participation limits. Once those limits are reached, utilities are expected to transition to a new compensation structure that will likely provide reduced credit values for excess solar energy.
The important part is:
Homeowners who install solar and receive utility approval before the program changes are grandfathered into full 1:1 net metering.
This means:
- You lock in today’s more favorable credit structure
- Your system continues receiving full retail credit even if future customers receive lower export rates
- Your long-term solar savings remain protected
Historically, when other states have moved away from 1:1 net metering, replacement programs have credited exported solar energy at significantly lower rates, which reduces overall financial returns and increases payback timelines.
If solar is something you’ve been considering, securing installation before these changes occur is the best way to lock in the strongest long-term financial benefits available today.