How does Philadelphia Electric Company (PECO) net metering work?

Philadelphia Electric Company (PECO) net metering allows solar energy system owners to accumulate bill credits when their panels are producing more energy than they use. With PECO’s net metering program, you can turn around and use those extra credits when your panels aren’t producing enough power to meet your electricity needs.

If you have produced more energy than you used by the end of the billing period, the excess credits will go towards your next bill. When the metering year ends on May 31, PECO will pay you for any excess kilowatt-hours from that year. There is no limit to how much of this extra power generation PECO will purchase. As a result, you can use your solar credits to supplement your energy needs and save money throughout the year, and you will also receive extra money on May 31st if you produced more power than you used.

Where does PECO offer net metering?

Philadelphia Electric Company offers net metering to its customers in three regions:

• Philadelphia Region, serving the city of Philadelphia
• Delchester Region, serving Delaware, Chester, and York counties, including Lower Merion Township
• Bucksmont Region, serving Bucks and Montgomery Counties, not including Lower Merion (served by Delchester Region)

What are Philadelphia Electric Company’s rates and prices for net metering?

The rates and pricing for PECO’s net metering program depend on your property’s electric tariff rate, which is determined by your property type. For example, a single-family home or a building consisting of two to five units has one rate (Rate R) whereas offices and other commercial buildings fall under a different rate (Rate GS). Net metering works the same way for both of these rates. Every kilowatt-hour (kWh) produced by your solar panels that you don’t use is fed back to the grid. One kWh is equal to one credit, so every excess kWh will earn you one credit for that month.

With enough credits, your energy bill could be close to zero (you would still owe a monthly customer charge and other minor charges under your rate schedule). If you accumulate extra credits, these will be used on the next month’s bill. When the end of the net metering year ends on May 31st you will receive credit for any leftover kilowatt-hours, which is equal to the full retail value of that kWh.

What is Philadelphia Electric Company’s net metering cap?

There is no state-wide or company-specific cap on the amount of solar that can subscribe to net metering in Pennsylvania. However, there are caps on the size of your solar energy system. For residential customers the cap is set at 50 kW and for nonresidential customers the cap is 3 megawatts (MW).

Is Philadelphia Electric Company’s net metering the best in Pennsylvania?

The other electrical utilities that offer net metering in Pennsylvania allow customers to use solar credits to offset their energy consumption, just like PECO. If you have credits left over at the end of the year you will be compensated for them at the retail value of the kWh. However, it is important to note that for some companies (such as Duquesne Light Co) there is a limit to how much of that excess generation they will purchase.

The main difference between PECO and other electrical utilities in Pennsylvania is the rate that you pay per kWh. For instance, PPL Electric Utilities Corp has a higher fixed distribution charge than PECO, but you will pay less per kWh. The cost per kWh is variable and can change multiple times in one year, so if you are looking to save it is best to pay attention to current rates.

What will happen to my PECO net metering bill credits?

If your solar panel system produces more kilowatt-hours than you use in a month then those kWh get stored as credits. Credits carry over into the next month as bill credits and can offset cost for months when you aren’t making enough electricity to fit your need (which is common in winter months).

If your solar panel system produces more electricity than you used in a year, you may have excess net metering credits at the end of the year. PECO will purchase this excess generation from customers every May 31st. The rate PECO pays is based on average generation prices over the past 12 months for your rate class. There is no limit to how much excess generation PECO will purchase.

Does PECO offer other solar incentives?

PECO will provide a credit of up to $400 to help offset the cost of installing the second meter required for net metering. To qualify you will need to provide a copy of the invoice for the installation of the second meter board and send a written request to PECO within 6 months after PECO issues its final acceptance of the Interconnection Agreement.

PECO does not offer any other financial incentives for solar, however they do offer other energy efficiency rebates and discounts:

• Home rebates, which you receive by upgrading to high efficiency appliances and heating and cooling equipment
• Smart Builder Rebates Program, for ENERGY STAR® certified homes
• Lighting discounts on energy-efficient LED bulbs

Learn more about Pennsylvania solar rebates & incentives with EnergySage’s Pennsylvania Solar Incentives guide.

PECO solar interconnection policies and costs

You will have to submit a solar interconnection application to have your panels connected to PECO’s grid. This application assures that technical, contractual, rates, and metering requirements are settled between the system owner and PECO beforehand. There is an application fee, which varies by the size of your installation.

PECO will review your interconnection application to assure that it complies with:

• Municipality building codes
• the National Electric Code
• the National Electrical Safety Code
• PAPUC PA Code Chapter 75 (Alternative Energy Portfolio Standards)

The last step of the interconnection process is PECO’s Certification of Completion form, which the applicant must sign, and an electrical underwriter’s inspection of the interconnected power system wiring.