Quick Answer
NET METERING CREDITS EXPIRE IF NOT USED, THUS LOSING THE ABILITY TO OFFSET FUTURE ENERGY EXPENSES. INSTEAD, THE CREDITS BECOME A ONE-TIME PAYMENT FROM THE UTILITY COMPANY, USUALLY AT A RATE LOWER THAN THE ORIGINAL RATE. THIS MEANS HIGHER OVERALL ELECTRICITY COSTS OVER THE LONG TERM.
What Happens to Net Metering Credits
If you don’t use your net metering credits within the specified timeframe (usually 12-18 months), they will expire. This means you’ll lose the ability to offset future energy expenses. The utility company will typically pay out the net metering credits at a rate lower than the original rate, usually around 80-90% of the retail rate.
Calculating the Loss of Net Metering Credits
To calculate the loss of net metering credits, you’ll need to multiply the total amount of credits by the pay-out rate. For example, if you have $1,000 in net metering credits and the pay-out rate is 85%, you’ll receive $850. This is lower than the original retail rate of $1,000.
Strategies to Maximize Net Metering Credits
To avoid losing net metering credits, it’s essential to carefully plan your energy usage. Consider installing energy-efficient appliances and using energy-monitoring tools to track your energy consumption. You can also adjust your energy usage patterns to coincide with periods of high solar production, such as during the summer months. By maximizing your net metering credits, you can save money on your electricity bills and make the most of your solar investment.
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