Legislation
Probably the number one objection I hear to going solar in the Panhandle is, “This seems too good to be true”. As hard as I try to explain it verbally, concepts are often missed by homeowners. It’s truly impossible to understand the “sweet spot” of net metering legislation without some background.
Net metering (NEM) 1.0
The net metering rules of Florida were enacted in 2008 by the Florida Public Service commission (PSC) and apply only to the four investor-owned utilities. Phase one was focused on interconnection and net metering. By July 1, 2009, the standardized net metering program was adopted.
Net metering (NEM) 2.0
Florida allowed for renewable energy systems to connect with the states NEM infrastructure. Applications are done via the utility providers website and are handled by your project manager. Once approved, the meter may be replaced with one that can measure the additional energy being produced and set back into the grid. Some homes already have a meter with this capability so replacement would be unnecessary in these instances.
How it works: Floridians with approved applications with renewable energy systems can earn a credit for each kilowatt (kW) of energy that their system produced. Your monthly electric bill will include an account of kilowatts generated and sent back to the utility provider in addition to the kilowatts used from the utility provider. Should kilowatts be produced and consumed immediately, these remain undocumented.
Each 12 months, the homeowner with solar is compensated for unused credits at the wholesale rate. Thus, generating approximately the same kilowatts as are consumed is beneficial.
The current net metering policies make going solar very lucrative for eligible homeowners.
But that could change at any given time. In fact we narrowly escaped the transition from NEM 2.0 to NEM 3.0 in 2022.
See what NEM 3.0 looks like in another state whose Governor did not veto the bill.
Obviously, these four utility districts prefer to pay homeowners with solar the wholesale rate. Lobbyists are working overtime to make that the case so “waiting” to go solar is a risk not work taking.