Virtual net metering allows customers to receive bill credits for excess electricity their solar system sends to the grid, even when the power is used elsewhere on the network. Unlike physical net metering that requires on-site generation and consumption at the same location, virtual net metering enables subscription models and community solar programs to function. Credits typically appear as line-item reductions on monthly utility bills.
Technical Details
Virtual net metering works through software systems that track energy generation and consumption separately. Credits are often valued at retail electricity rates, ranging from $0.10 to $0.25 per kilowatt-hour depending on location and utility. The system requires advanced metering infrastructure and utility-level monitoring. Most programs offer 12-month rolling cycles for credit expiration, with unused credits forfeited or purchased by utilities at lower wholesale rates.
Practical Significance
Virtual net metering is essential for community solar viability, allowing renters and apartment dwellers to participate in solar programs. It increases solar adoption rates by eliminating location requirements. However, credit values and program structures vary significantly by state, with 23 states currently offering virtual net metering programs with varying efficiency levels.