Residential solar panels are becoming more affordable and accessible, and many homeowners are considering them as a way to reduce their electric bills. If you’re thinking about installing rooftop solar, it’s important to understand how it works — and how CHELCO can help you make an informed decision.

What is Net Metering?        

CHELCO offers a net metering program for members who install a renewable energy system, such as solar panels, at their home or business. Here’s how it works:

• During sunny hours, your solar panels may generate more electricity than your home uses.
• That extra energy doesn’t go to waste — it’s sent back to the electric grid.
• In return, you receive a credit on your CHELCO bill for the excess electricity.

While solar is the most common option, net metering can also apply to other small-scale renewable systems, including wind, hydroelectric, geothermal, and biomass energy.

How are credits calculated?        

When your system isn’t generating enough electricity — like at night or on cloudy days — your home pulls power from the grid, and your meter runs like normal. When you generate more than you use, you send power back to the grid. At the end of the billing cycle, you’re billed for the net amount of electricity you used — that’s the energy you pulled from the grid minus the energy you sent back.

Who uses the excess power?        

When your solar array sends electricity back to the grid, it doesn’t necessarily go to your neighbor’s house. Instead, it feeds into CHELCO’s local power grid, where it becomes part of the overall energy supply for the community.
While generating your own energy is exciting, it’s also a big investment. That’s why it’s important to understand how everything works before moving forward. 

What to know before installing solar

If you’re a CHELCO member and plan to install a renewable system, there are a few steps you’ll need to complete:

• Review CHELCO’s net metering rate.
• Have your system inspected by your county building department.
• Sign an interconnection agreement with CHELCO.
• Schedule a final inspection and meter installation by a CHELCO technician.

Do your homework        

Before signing a contract, contact CHELCO’s Energy Services team. We can help you review your energy use, understand your potential savings, and determine if solar is the right fit for your home. We also recommend contacting multiple solar vendors to compare quotes and make sure you’re getting accurate, transparent information.

Watch out for misleading sales tactics

Unfortunately, we sometimes hear from members who’ve been approached by aggressive or misleading solar salespeople.

While many solar companies are honest, we encourage you to be cautious. If something sounds too good to be true, it usually is.

Some door-to-door sales teams falsely claim to be “partnered with CHELCO” or suggest they “work with CHELCO” — this is simply not true. CHELCO is not affiliated with any solar sales company.

We’re here to help           

At CHELCO, we’re more than your power provider — we’re your energy partner. If you’re curious about solar or have questions about how net metering works, we’re just a phone call away.

Contact our Energy Services team at (850) 307-1122, or visit CHELCO.com/renewables to learn more.

Let us help you power your home with confidence.