What happens to the excess energy produced by my solar panel system?

Asked 2 years ago
When a solar panel system generates excess energy beyond what is needed for a home's consumption, several options may become available depending on the local regulations and the specific configuration of the system. One common way to handle excess energy is through net metering, which allows homeowners to send surplus power back to the grid. In this case, the utility typically credits the homeowner for the energy that is contributed, which can offset future electricity bills. Alternatively, some solar panel systems are connected to battery storage systems. In this scenario, any surplus energy can be stored for later use during periods when solar production is low or when energy demand is high. This can provide homeowners with greater energy independence and reliability. It is important to note that the specifics regarding how excess energy is managed can vary by location due to different utility policies and state regulations. Therefore, for tailored information regarding how excess energy is handled in a particular area, visiting the current web page related to local solar energy policies and solar panel systems may provide helpful insights.
Adam Goldkamp is the editor / author responsible for this content.
Answered Jul 9, 2025

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