What Is Solar Net Metering In Oregon?

Net metering is a powerful tool for Oregon residents to control their energy usage and save tons on their monthly utility bills. Net metering is also an important term Oregon homeowners and businesses need to know when thinking of installing solar.

But what is net metering, and how does net metering work?

WHAT IS SOLAR NET METERING?

Net metering in Oregon is a billing mechanism that credits energy consumers for any excess energy they send to the grid. 

With net metering, solar homeowners and businesses will only be billed for the “net” energy they consume each month. This is calculated by subtracting the amount of energy produced from the energy consumed.

This means that when the solar panels are producing more than the house or business is consuming, the meter runs backwards.

If the solar panels produce more energy than the homeowners or business consume in a month, they will receive credits they can apply towards future energy consumption. However, it is important to know that energy credits expire on an annual basis.

Energy credits are a 1:1 exchange for kWh used. For every excess kWh produced, you can apply that to 1 kWh used in another month.

HOW DOES NET METERING WORK IN OREGON?

Oregon has one of the most beneficial net metering policies in the US. All utilities within Oregon (excluding Idaho Power) must offer net metering to their customers.

For PGE and PacifiCorp, solar systems are limited to 25 kW for residential installs and 2 MW for non-residential installs.

For municipal, electric cooperatives, and public utility districts, solar systems are limited to 10 kW for residential installs and 25 kW for non-residential installs. 

WHY IS SOLAR NET METERING IMPORTANT?

It is vital for Oregon solar customers to know about net metering because their system will often send excess energy to the grid.

The huge benefit of net metering is that it allows homeowners and businesses to make up for low energy production in some months by using energy credits earned in more solar-friendly months.

For example, when a homeowner is away from their house during the long, bright days of summer, they can bank and save those energy credits to use in winter, when the days are short, cloudy, and energy consumption is high.

TYPES OF NET METERING

WATT-FOR-WATT

Watt-for-watt net metering allows homeowners to offset their electricity consumption by sending excess solar energy back to the grid. In return, they receive credits equal to the retail rate of electricity, effectively allowing them to “store” energy for future use. This system uses a bidirectional meter to track both the energy consumed from the grid and the energy sent back.

How It Works in Oregon

In Oregon, net metering is available to customers of major utilities like Portland General Electric (PGE) and Pacific Power. Excess energy credits can be carried over month-to-month for up to 12 months. If any credits remain after this period, they are typically transferred to low-income assistance programs.

Advantages

• Full Retail Credit: Homeowners receive credits at the same rate they pay for electricity.

• Seasonal Flexibility: Credits can offset higher usage during less sunny months.

• Simplified Billing: One-to-one crediting makes understanding bills straightforward.

Considerations

• Annual Credit Expiry: Unused credits expire annually.

• No Cash Payouts: Credits reduce bills but are not paid out in cash.

 

SOLAR BUYBACK PROGRAMS

Solar buyback programs compensate homeowners for excess energy sent to the grid, but typically at a rate lower than the retail price. These programs are common in areas without net metering or where utilities have transitioned away from it.

How It Works in Oregon

Utilities like the Eugene Water & Electric Board (EWEB) offer buyback rates for excess energy. As of 2025, EWEB compensates at $0.0710 per kWh for net-metered customers and $0.0768 per kWh for direct generation. 

Advantages

• Cash Compensation: Homeowners receive direct payments for excess energy.

• Potential for Profit: Efficient systems can generate income beyond personal consumption needs.

Considerations

• Lower Rates: Compensation is typically below the retail rate.

• Rate Variability: Buyback rates can change based on market conditions.

• Complex Billing: Separate rates for buying and selling can complicate billing.

 

DOES GREEN RIDGE HELP WITH NET METERING?

Green Ridge Solar takes care of all the net metering paperwork for our customers. We understand the confusion and frustration that comes with filling out endless forms, so we make the entire process simple and easy.

If you have any questions about net metering or other topics, contact Green Ridge Solar today.

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