Whether you’re powering a family home or a working farm, solar energy can do more than just lower your electric bill, it can help you earn credit for the power you don’t use. That’s where net metering comes in.
Net metering is a key reason many homeowners and rural property owners are turning to solar.
In this article, we’ll break down how net metering works, what it means for your energy bills, and how to make the most of it, whether your panels sit on your roof or in your field.
What Is Net Metering?
Net metering is a billing system that helps solar owners get credit for the extra electricity their panels produce. When your solar panels generate more power than your property is using, especially on bright, sunny days, that energy doesn’t go to waste. Instead, it’s sent back to the grid, and your utility company gives you credit for it.
Simple Definition
Your meter tracks how much power you use from the grid, but also how much you send back. If you generate more than you use during the day, those credits can help lower your bill later, like at night or during cloudy weather.
Who Can Use It?
Net metering is available to most solar customers who are connected to their local utility. While the details can vary slightly depending on your provider, most utilities in Minnesota and Wisconsin offer net metering programs designed to encourage solar adoption. If your system is grid-tied and properly installed, you’re likely eligible.
How Net Metering Works Step by Step
Once your system is up and running, net metering becomes part of your everyday energy flow.
Producing More Than You Use
During the day, your solar panels often generate more electricity than you’re using, especially in the summer months. That excess power is automatically sent back to the grid. Your utility meter records how much energy you exported, and your account is credited accordingly.
Using Grid Power at Night or in Winter
At night or on cloudy days, your solar system may not generate enough to meet your needs. That’s when you draw power from the grid, just like any other customer. But because of the credits you earned during sunnier times, you’re often not paying for that energy.
Monthly and Annual Net Metering Calculations
Each month, your utility will calculate how much power you sent to the grid versus how much you used. If you’ve banked more than you’ve drawn, those credits may carry forward to the next month.
Financial Benefits of Net Metering
One of the biggest reasons homeowners and farmers go solar is to save money, and net metering plays a major role in making that possible. By earning credits for extra energy, you reduce your overall electricity costs and make your system work harder for your budget.
Lower Monthly Electric Bills
With net metering in place, you’re not just reducing how much energy you buy from the grid, you’re actively replacing it with what you’ve already produced. Over time, this can lead to noticeable savings.
Even partial offsetting makes a big difference. If your panels cover 70–80% of your total energy needs, you’ll still see a substantial drop in monthly costs.
Maximizing Return on Solar Investment
The financial benefits of net metering go beyond day-to-day savings; they help shorten your solar system’s payback period. Instead of letting your excess energy go unused, you’re turning it into real value. In rural areas, where power demands and roof space (or land for ground-mount systems) tend to be larger, the returns can be even greater.
Net Metering for Farms and Rural Properties
Farms and rural homes often have unique energy needs and more space to generate power. That’s where net metering can really shine.
During peak summer months, solar panels on barns, sheds, or open land can produce far more electricity than the property uses. Whether you’re powering irrigation systems, well pumps, or livestock buildings, that extra energy doesn’t go to waste. Instead, it’s sent back to the grid and converted into credits.
Those credits can then offset electric use in other areas, like your farmhouse, or during seasons when your solar output drops but demand stays high. Winter heating equipment, cold storage units, and security systems still require energy even when the sun is low. Net metering helps smooth that out.
Things to Know Before You Enroll
Net metering offers clear benefits, but it’s important to understand how it works with your specific setup and utility provider. Asking the right questions up front can help you avoid surprises later.
Utility Requirements and Caps
Some utility companies have limits on how much excess energy they’ll credit or may apply different rates depending on the size of your system. Others offer full retail value for the energy you send back, while some apply a reduced rate. It’s a good idea to check with your provider to see what their specific net metering policy includes, especially for larger systems.
System Size and Setup
Net metering typically applies only to grid-tied systems. If you’re considering battery storage or going fully off-grid, you may not be eligible. Also, systems must usually be sized to meet your home or farm’s actual energy use, not significantly oversized for the purpose of selling back large amounts of electricity.
Before you install, your solar installer should review your expected usage and design a system that aligns with both your goals and local net metering rules.
Making Net Metering Work for You
With the right setup, net metering can significantly improve the value of your solar system, whether you’re powering a city home, a farmhouse, or an entire rural property. By planning your system around your real energy needs and understanding how credits work, you can get the most out of every sunny day.
If you’re thinking about going solar, the team at Wolf River Electric can help you design a system that works with your utility and takes full advantage of net metering. From roof assessments to credit projections, we’re here to help you save smarter and power your future with confidence.
