What is Virtual Net Metering?
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What is virtual net metering?
You may have heard of solar net metering; but what is virtual net metering and how does it work?
Virtual net metering allows you to take advantage of solar electricity that’s not generated on your property: thanks to this incentive, even if you don’t have rooftop solar panels powering your home directly, you can receive credits on your electricity bill for solar electricity produced elsewhere.
Given that not everyone can install solar on their own property, virtual net metering is a vital policy to provide greater access to solar throughout the country. One example of virtual net metering in action is community solar: when a community solar farm generates electricity, that solar energy isn’t used on-site. Rather, solar credits are virtually sent to customers who buy into or subscribe to the community solar program. These credits appear directly on each customer’s electricity bills, helping to reduce the amount they owe each month.
Virtual net metering applies to more than just community solar: if you have a rooftop solar panel system that generates more electricity than you need, you can use virtual net metering to send your extra credits to another electricity customer. However, depending on your state and utility company, you may only be able to send these credits to people who live close by or in the same utility territory.
Virtual net metering can also be useful if you want to install a solar panel system on a multifamily property because it allows you to divide solar net metering credits between multiple people living in separate units in the same building.
Unfortunately, virtual net metering is not available in every state – governments need to pass proper legislation before requiring or allowing utility companies to offer virtual net metering. Be sure to check with your utility company to learn more about local virtual net metering policy.