Guide
Florida net metering: what a banked kilowatt-hour is really worth
Updated
Florida is one of the states that kept net metering, and that is genuinely good news. The catch sits at the end of the year, and it is the reason an oversized Florida system disappoints.
Where the rule comes from
Section 366.91, Florida Statutes, defines net metering as "a metering and billing methodology whereby customer-owned renewable generation is allowed to offset the customer's electricity consumption on site", and requires that each public utility "develop a standardized interconnection agreement and net metering program for customer-owned renewable generation", with the Public Service Commission establishing the requirements (flsenate.gov). Municipal utilities and rural electric cooperatives have the same duty under subsection (6), through their own governing bodies rather than the commission.
The commission's implementing rule is Rule 25-6.065, Florida Administrative Code, "Interconnection and Metering of Customer-Owned Renewable Generation" (flrules.org). Ask your own utility for its current tariff sheets rather than relying on a summary, including ours.
How it works month to month, and at year end
Florida Power and Light describes the mechanism for its customers like this: when your system produces more than you use, "the excess amounts are applied to the customer's next month's electric bill", and then "if you have unused kilowatt hours (kWh) in your bank when your meter is read in December, a credit will be applied to your December bill", referring customers to its COG-1 rate for the detail (fpl.com).
That is the whole shape of it. Through the year, exported kilowatt-hours offset imported ones roughly one for one, which is the valuable part. At the December read, whatever is still banked is settled under the utility's cost of generation rate rather than carried on at retail value. Utilities buy at avoided cost; you buy at retail. The two are not the same number.
What that means when you size a system
- Size to your annual usage, not above it. Kilowatt-hours generated beyond what you consume in a year get settled at the utility's rate, not yours. That is the single most common way a Florida system underperforms its sales pitch.
- Seasonality is your friend here. Florida's summer air conditioning load lands in the same months as peak production, so more of your generation offsets consumption directly rather than banking.
- A pool pump, an electric water heater or an EV can absorb surplus that would otherwise bank at low value. Shifting those loads into daylight hours costs nothing.
- Check the tier your system falls into. The commission's rule sets different application requirements by system size, and utilities apply fees and insurance requirements to larger tiers. Residential rooftop systems normally sit in the smallest tier.
What to ask your utility before you sign
- "Send me the current net metering tariff sheets and the interconnection agreement I would sign."
- "What rate applies to unused banked kilowatt-hours at the annual settlement, and when is my settlement month?"
- "Are there any monthly charges specific to net metering customers on my rate schedule?"
- "How long does interconnection approval take, and can I switch the system on before it is approved?" The answer to the last part is normally no.
Municipal utilities and electric cooperatives run their own programs under section 366.91(6), and the terms differ from the investor-owned utilities. If you are served by one, ask them directly. Nothing here estimates your savings.