How is Your Solar Connected?

For many homeowners, installing solar feels like the final step—reducing bills, powering the home, and making use of clean energy. But did you know your solar system can work for you in different ways, depending on how it interacts with the grid?

Your system’s grid connection determines how you use, store, and sell your energy. The three most common grid setups are:

• Net Energy Metering (NEM) – You use solar in real-time and get full retail credit for excess energy.

• Net Billing – You use solar first, then sell extra energy at a lower, predetermined rate.

• Buy-All Sell-All – You sell all generated power but must purchase your electricity from the grid.

  
  

With NEM and net billing, your solar system can be connected on the load side or line side—before or after your main breaker—and the energy it produces can power your home directly, even during outages. The key difference lies in how extra energy is credited. Under NEM, any excess power you generate is credited at the same rate you pay for electricity, essentially turning your meter backwards. In a net billing setup, however, the surplus energy is sold back to the grid at a predetermined rate that’s often lower.

In a Buy-All Sell-All configuration, your solar panels are connected directly to the grid. You get compensated for every kilowatt-hour your system produces, but you must purchase all your electricity from the grid. This means that, unlike the other setups, you cannot use your own solar power during a grid outage.

Beyond how you’re connected, you also have choices in how you use your solar energy. We will discuss some of the options in the following posts.