What happens when my solar PPA produces more energy than I need?
Excess solar production is handled through net metering policies that vary by state and utility.
Under a solar PPA, you purchase energy from a third-party-owned system at rates typically lower than your utility's standard rates. When production exceeds your immediate consumption, the handling depends on your location and utility rules.
With Net Metering: If your state and utility allow net metering, excess energy is automatically sent to the grid and credited to your account. The credit rate varies widely — full retail rate (same as your purchase rate), reduced rate (lower than your purchase rate), or no compensation at all. Research your state's net metering policies to understand what applies to your location.
Without Net Metering: In states without net metering policies, the utility will not compensate you for excess production. In these cases, solar systems should be sized to match your consumption, or you may choose to install battery storage to retain excess energy for later use.
When your system produces less energy than you need, you simply draw additional electricity from the utility, just as you would without solar in place.