Net gains
Net metering, solar battery storage win-win for offsetting costs, unplanned outages

I’d never heard of “net metering” until my electric bill hit $600 last February. Desperate for a way to reduce utility costs that skyrocket in the winter because we use electric heaters, I started getting quotes for rooftop solar power. 

That’s when I learned about a state law that requires Colorado utilities to credit homeowners who send power back to the grid at the same rate they would pay to buy power from the power company. This “net metering” policy made adding solar to my home a good investment. Even though we didn’t add batteries, which would have doubled our costs, our solar panels will offset a significant portion of our utility bills. 

I’m a fan of net metering because it forces Xcel Energy, which enjoys a monopoly in my area, to discount our bill for any energy our solar panels produce. They do this even though it cuts into their profits. Net metering made the economics of solar power work in my instance, and we save money when the sun shines brightly and spring days stay cold.

But after watching hurricanes knock out power across large regions of the country, I have a brand-new perspective on net metering. Rather than viewing it as a policy that lets homeowners save on utility bills, I’m thinking of net metering as a way to make where I live more resilient to natural disasters. 

My parents live in Asheville, N.C., which was devastated by Hurricane Helene in September 2024. They were out of town visiting family when the storm struck, but water and power outages kept them from getting home for weeks.

Until 2023, North Carolina had used net metering to encourage solar installation, contributing to its status as the fourth-largest solar power-producing state in the country. But in recent years, power companies successfully persuaded legislators in North Carolina, as well as California, Nevada and Arizona, to switch from net metering to “net billing.” That change and other policies now pay solar producers at significantly lower rates. 

In those states, utilities argued that net metering hurts homeowners who don’t have solar by increasing costs for non-solar power. But analyses, notably those conducted by public power consultant Richard McCann of mcubedecon.com, show that increased solar production saves billions for non-solar producers in California. 

When states move away from net metering – despite the dubious arguments justifying the shift – the pace of solar installations slows dramatically. In California, new solar installations dropped by 56% from 2022 to 2024.

For those of us with solar panels, I think it’s time to think about adding storage batteries, using that extra electricity for battery charging. Batteries make any home more independent from the grid, but here’s the catch: The cost can be prohibitive. I’m saving up as solar batteries cost between $12,000 - $20,000 for a typical home according to solarreviews.com.  

The advantages to battery support, however, are significant. If homeowners use their net metering savings to add batteries, during natural disasters, they could still pump water, run refrigerators or charge their phones until power is restored. 

Normally, I wouldn’t advocate for state governments to step in and regulate businesses. But in the case of power companies, I support net metering because there usually isn’t a competitive free market for power. 

Customers are at the mercy of electric companies that raised power prices 11% in 2022 and 2.5% in 2023, according to the U.S. Energy Information Administration’s state electricity profiles. As the same companies were raising prices, they were also fighting to reduce the amount rebated to solar-producing homeowners. 

Now that I’m aware of net metering and invested in providing solar power back to the grid, I’m keeping tabs on any proposal that would reduce net metering in my state. 

It’s such a wonderful concept – thousands of homeowners selling power back to the electric company – while also reducing their vulnerability to natural disasters. 

What’s even better: Residential solar power mimics a stand-alone power plant, one that needs never be built. 

Andrew Carpenter is a contributor to Writers on the Range, writersontherange.org, an independent nonprofit dedicated to spurring lively conversation about the West. He writes in Colorado.