How Net Metering Works
Your solar panels often produce more electricity than your home needs during the day. Net metering tracks the flow of energy between your home and the grid.
Solar panels generate electricity
During daylight hours, your solar panels convert sunlight into electricity that powers your home in real time. Appliances, HVAC, and electronics use solar energy first.
Excess energy flows to the grid
When your panels produce more electricity than you are currently using, the surplus is automatically exported to the utility grid through your bi-directional meter.
Your meter spins backward
Your smart meter tracks energy flowing in both directions. When you export solar energy, it records a credit. When you draw from the grid, it records usage.
Credits offset your bill
At the end of each billing cycle, your utility calculates the net difference. If you produced more than you used, the credits roll forward to the next month.
Day vs. Night Energy Flow
Understanding how energy flows between your home and the grid throughout the day.
Daytime
Solar produces more than you use. Excess energy flows to the grid and you earn credits at the full retail rate.
Nighttime
Solar panels are not producing. You draw power from the grid and your daytime credits are applied to offset the cost.
Monthly Bill
Your net bill equals your total grid usage minus your solar credits. Excess credits roll over to the next month automatically.
Florida Utility Policies
Florida law requires investor-owned utilities to offer net metering at the full retail electricity rate for residential solar customers.
FPL (Florida Power & Light)
Full retail rate credit for excess solar generation. Credits roll over month to month with an annual true-up in January. FPL is the largest utility in Florida, serving most of South and Central Florida.
Duke Energy Florida
Full retail rate net metering with monthly credit rollover. Duke Energy serves parts of Central and North Florida including the Orlando, St. Petersburg, and Ocala areas.
TECO (Tampa Electric)
Full retail rate net metering for residential solar customers. Credits carry forward each month. TECO serves the Tampa Bay metropolitan area and surrounding Hillsborough County.
Full Retail Rate Credits
In Florida, net metering credits are calculated at the full retail electricity rate, not a discounted wholesale rate. This means every kilowatt-hour you send to the grid is worth the same as every kilowatt-hour you use from the grid.
As electricity rates rise over time, the value of your net metering credits increases too, making your solar investment more valuable each year.
Annual True-Up
Unused net metering credits roll forward month to month throughout the year. Once a year, your utility performs an annual true-up (settlement), typically in January for FPL customers.
During the annual true-up, any remaining excess credits are settled. Properly sized solar systems aim to minimize leftover credits at true-up while maximizing your monthly bill offset throughout the year.
Benefits of Net Metering
Net metering is one of the key financial advantages that makes residential solar economically viable in Florida.
Lower Monthly Bills
Offset your electricity costs by earning credits for the excess solar energy you produce during the day.
Faster Payback
Net metering credits accelerate your return on investment, helping your solar system pay for itself sooner.
Full Retail Rate
Florida law requires utilities to credit you at the full retail electricity rate — not a discounted wholesale price.
Monthly Rollover
Unused credits automatically roll over to the next billing cycle, banking your summer surplus for cloudier months.
Grid Stability
Your excess energy goes to your neighbors' homes, reducing strain on the electrical grid during peak demand.
Simple Billing
Your utility manages everything through your existing account. You receive one easy-to-read monthly statement.