: This is where the rate changes. Unlike the 1-to-1 monthly credit, the annual payout is usually at the avoided cost (wholesale market rate), which is significantly lower than the retail rate you pay for electricity.
: If you have a remaining credit balance after 12 months, PSEG "buys back" those credits. pseg solar buy back
Energy credits don't sit in your bank forever. Once a year, on your "Anniversary True-up" date, PSEG reconciles your account. : This is where the rate changes
Maximizing your solar investment requires understanding how utilities handle the energy you send back to the grid. For PSE&G (New Jersey) and PSEG Long Island customers, the "buy back" process primarily functions through , a system that allows you to bank excess energy as credits rather than receiving immediate cash. How PSEG Net Metering Works Energy credits don't sit in your bank forever
: You can often request a one-time change to your reconciliation date. Setting it for the end of winter (e.g., February) may allow you to use up summer credits during high-heating months before they are converted to the lower wholesale cash value. Key Benefits and Considerations Solar Power and Net Metering - PSE&G
When your solar panels produce more electricity than your home consumes—typically during sunny afternoons—the surplus flows back into the grid.