Net Metering in Virginia: How It Actually Works (and Why It Matters)

If you’ve started researching solar in Virginia, you’ve probably heard the term net metering mentioned early and often.

It’s sometimes oversimplified, sometimes misunderstood, and occasionally treated like a bonus feature. In reality, net metering is one of the most important pieces of how residential solar works day to day.

Understanding it clearly helps homeowners set realistic expectations and avoid confusion once a system is turned on.

What Net Metering Is — at a Basic Level

Net metering is the system used to track how much electricity your solar panels produce compared to how much electricity your home uses.

When your system produces energy:

• Your home uses that power first

• Any excess energy flows back to the grid

• Your utility records that excess as a credit
  
  

When your home needs more power than your panels are producing—at night or during low-production periods—you pull electricity from the grid and use those credits to offset it.

You remain connected to the utility at all times. Solar doesn’t replace the grid—it works alongside it.

Net Metering Is Not a Check — It’s a Balance

A common misconception is that excess solar energy turns into cash.

In Virginia, net metering generally works as a billing credit, not a payout. Excess energy is tracked and applied against future usage, helping reduce how much electricity you need to purchase later.

Think of it like a running balance:

• High-production months build credits

• Lower-production months use them
  
  

Solar isn’t about a perfect bill every month. It’s about balance over time.

How Net Metering Works With Virginia Utilities

Most Virginia homeowners fall under net metering programs administered by either Dominion Energy or Appalachian Power Company, depending on where they live.

While each utility has its own policies and billing formats, the overall structure is similar:

• A bidirectional meter tracks energy flowing both to and from the grid

• Excess production is credited to your account

• System size is typically capped based on historical energy usage
  
  

Because utilities manage net metering differently, understanding which utility serves your home is an important part of evaluating solar realistically.

Why Net Metering Feels Different Month to Month

Net metering does not produce identical bills every month—and it isn’t designed to.

Both energy usage and solar production change throughout the year:

• Summer months often generate excess energy

• Winter months typically produce less and use more grid power
  
  

Credits built during high-production periods help offset usage during lower-production seasons. That’s why solar performance should be evaluated on a 12-month basis, not by looking at one or two bills in isolation.

What Happens If You Don’t Use All Your Credits?

In most cases, unused net metering credits:

• Roll forward from month to month

• Reconcile or reset at a specific point in the year, depending on the utility
  
  

The exact handling of unused credits varies between utilities like Dominion Energy and Appalachian Power Company, which is why homeowners should understand their specific billing rules rather than relying on general assumptions.

Net metering is predictable—but only when it’s explained accurately.

Why Net Metering Is Central to Solar Planning

Net metering is the bridge between solar production and real-world energy use.

Without it:

• Excess solar energy would be wasted

• Systems would need to be much larger and more expensive

• Seasonal production swings would be harder to manage
  
  

With net metering, homeowners can benefit from solar year-round—even when production and usage don’t line up perfectly on a daily basis.

The Takeaway for Virginia Homeowners

Net metering isn’t a perk. It’s a foundational part of how solar works in Virginia.

When homeowners understand it clearly, they:

• Set realistic expectations

• Avoid confusion during seasonal changes

• Evaluate system performance more accurately
  
  

Solar becomes far easier to understand when net metering is treated as a core concept instead of an afterthought.

VirginiaSolar.org was created to give Virginia homeowners clear, unbiased information about solar—so decisions are made with confidence, not pressure.

Our Help Desk and resource library are here whenever you want to go deeper or ask questions.