Can You Overproduce Solar Energy? What Happens to Excess Power?

Solar panels capture a varying amount of electricity each day, depending on weather conditions. Well-sized solar arrays will often overproduce energy during sunnier months, but this energy doesn’t go to waste. It can be fed into the electric grid, stored in batteries, or put to creative uses around your home. Understanding how to manage surplus solar power enables homeowners to maximize their savings and contribute additional clean energy to the community. 

Understanding Excess Solar Energy

Solar systems often generate more energy than you can use at a given time, and that’s not a flaw—it’s a feature. Let’s unpack what “excess solar energy” really means and why it matters.

What is Excess Solar Energy?

Excess solar energy is all the electricity produced by your solar panels that you don’t consume at that moment. So, if your solar panels generate a large amount of electricity between noon and 4 pm, when your only energy use is a fridge, everything not used by the fridge is excess solar energy. 

As you might be thinking, excess solar energy is incredibly common. If your system is designed to supply a large fraction of your house’s power, you’re likely producing excess energy during the sunniest parts of the day. Not producing enough energy is even more predictable—solar panels can’t help much if you use any energy at night, so you end up drawing from the grid.

With these standards in place, the excess solar energy your panels generate during the day is typically sent back to the grid, allowing you to essentially trade it for additional energy later in the day.

This practice is called net metering, and we’ll discuss it in more depth below.

Why Homeowners Overproduce Solar Power

It may seem counterintuitive to generate more power than needed. Still, it’s an intentional sign of a well-designed solar system, accounting for seasonal fluctuations, standard efficiency decay, and anticipated usage increases.

Solar systems are sized to meet homeowner goals, which range from covering part of the electric bill to overproducing power to generate a profit. One common goal is to produce as much electricity as you consume in a year, which means overproducing solar power in sunnier months to make up for underproduction in winter. 

As solar panels age, their efficiency decreases, typically by less than one percentage point per year. Although it’s small, the degradation rate can make a difference over decades, meaning homeowners who want their system to meet their goals in 20 or 25 years will have to over-power their solar system by as much as 25% at installation.

Another factor is that energy usage across decades can change in predictable ways. If you install solar panels a year before you intend to add an addition to your home, it might be a good idea to increase your estimated power consumption and install more solar panels to match that.

Overproduction isn’t a bad thing; it’s often intentional and beneficial to the homeowners. While you might not be able to use all of the power your solar system produces, that power can go back to the grid and power your neighbors’ homes with clean, green energy. 

Managing Excess Solar Energy

Producing more solar energy than you consume is beneficial if you have a strategy to utilize it effectively. This section explores your main options for capturing, storing, or redirecting that surplus power.

Harnessing the Sun’s Bounty: Effective Management Strategies

Excess solar energy is a good problem to have—it means your solar array is performing so well that it exceeds your expectations. Now it’s time to make sure the excess energy is being put to good use. 

There are three ways to manage excess energy: net metering and billing (selling the energy back to the grid), battery storage (saving it for later use), and alternative consumption (finding creative ways to utilize the excess energy in real-time). Sometimes homeowners use a combination of these methods to handle their surplus power.

Net Metering: Your Ticket to Energy Savings

Net metering is a billing arrangement with your utility company that essentially allows you to use the grid as a battery. When your solar array overproduces, that power spins the meter backward and goes down the line to power your neighbors’ houses. Then, at night or whenever you need to use non-solar power, your home draws energy from the grid for which you already have credit, similar to in-store credit earned from returning an item. 

If you have net metering set up, you only end up paying for the “net” energy you use, your home’s total energy use minus the excess solar energy you send back to the grid. This is due to the special bi-directional meter used exclusively for net metering. Some utility providers even allow you to carry your energy “balance” over from month to month, which can be helpful if your solar array is sized to meet your average annual energy needs.

The financial impact of net metering is dramatic. It can significantly reduce your utility bills, or even eliminate them entirely, aside from monthly fixed charges, if you have a net metering excess. It can help you pay off your solar investment quickly, and afterwards help you save hundreds or thousands of dollars each year. 

Net Billing

Not all utilities provide net metering as an option, however. According to the Public Utility Regulatory Policy Act of 1978, power providers are required to purchase any excess renewable energy, including excess solar energy, at the rate it would cost the provider to produce it. Net metering is the most beneficial option to homeowners with solar panels, but another common option is net billing (also called net purchase and sale). 

Similar to net metering, net billing allows you to sell back excess solar energy. However, while net metering allows you to sell it back at retail price, with net billing, you may only receive the wholesale cost back. Your purchase and sale are tracked by two separate meters: one for the energy you draw from the grid and one for the energy you return to it. 

Depending on your particular utility company’s policies, the monetary difference between net metering and net billing can be pretty large. It’s important to research your company’s rate during the planning stage so that you can optimize for your utility’s policy. 

Solar Batteries: Store It for Later Use

Another method of managing excess solar energy is to store it in a home battery system. Large batteries, such as Tesla Powerwall or FranklinWH aPower2—both available through Solar Energy World—store your excess energy until your home needs to draw from it, whether that’s at night, on a cloudy day, or during a power outage. 

A battery provides independence from the grid, offering both security and cost benefits. In the event of a hurricane or snowstorm taking out power lines, you don’t need to worry about losing power like your neighbors. On the financial side, drawing on your excess energy during peak energy usage hours (generally around sunset) can save a lot of money since that’s when energy costs are highest.

Battery installations are growing in the US, with 28% of residential solar installations now including battery storage, primarily due to changes in net metering policies and incentives that now include solar storage systems. Incentives help offset the upfront investment required for battery storage, so consider your state’s policies to determine if it could be a good option for you. By storing your solar surplus, you can become almost entirely reliant on solar energy, eliminating your electric bill.

Alternative Uses: Get Creative with Excess Power

If you’re not feeding the grid or charging batteries, you may need to get creative with a solar panel system that’s producing more solar power than needed. Here are some more out-of-the-box ideas for using extra power:

• Charge an Electric Vehicle. If you own an electric vehicle that’s home during peak solar-producing hours, schedule charging for midday to take advantage of the free power. It may take some effort to plan ahead and set up a smart charging station or timer, but the energy savings are worthwhile.
• Run Appliances and Heavy Loads Midday. If you have smart appliances, you can set your dishwasher, laundry machines, or robotic vacuum to run during peak energy hours, rather than at night. Plus, when you come home from work, your house will be clean.
• Preheat or precool your house. If you heat or cool your house a few degrees less during the day, it’ll take less energy to maintain a good temperature once solar power is unavailable. 

Utilizing these more creative strategies in conjunction with net metering, net billing, and battery storage can help you maximize the benefits of your solar installation.

Financial Implications of Excess Solar Energy

More energy can mean more savings if you manage it right. Here’s how excess solar production can dramatically reduce your energy bills and accelerate your return on investment.

Impact on Utility Bills: A Financial Advantage

The biggest benefit of excess solar energy is its positive impact on your utility bills. When your panels overproduce, the financial benefits appear as lower charges, credits, or even checks from your utility.

• Lower (or $0) Electricity Bills: If you’re consistently overproducing energy, net metering and net billing will reduce your utility bill or eliminate it if you have a net metering excess. 
• Faster Return on Investment: The savings you gain through net metering, net billing, or storing excess power for later use shorten the time it takes to pay off your solar investment. Essentially, your panels continue to generate power even when you’re not using it personally, thereby boosting the economic value of the system.
• Payment for Surplus: Depending on your utility’s policy, if you end up with a surplus after a year of sending power back to the grid, you might receive a payment or credit at year’s end. Typically, this is at the wholesale rate (lower than retail), so while you won’t get rich selling power back, it’s still a bonus.

Real-Life Success Stories

Curious how others are making the most of their solar surplus? These real-life examples demonstrate how effective management of excess energy can yield significant benefits, ranging from emergency power to financial gains.

Personal Stories: Real-Life Success with Excess Energy Management

Every homeowner has a different experience with managing their excess solar energy. Here are some real-life examples to show how you can make your overproduction work for you:

• A family in Virginia switched to solar and quickly saw the benefits of net metering. In six out of their first seven months with solar, they produced more energy than they used, resulting in a nominal electricity bill. 
• One homeowner who was in the path of Hurricane Helene used their excess solar power to keep the lights on while neighbors were in the dark. 
• It’s also possible to use an electric vehicle’s battery as an energy asset. For example, Brian Foreman of Maryland participated in a state-sponsored pilot program, connecting his rooftop solar panels to his electric vehicle, which was outfitted for bidirectional charging. Foreman charges his truck when solar production is high and then uses the truck’s large battery to power his home for about four hours each evening (5–9 pm), covering the peak period when electricity is expensive. 

Managing Excess Solar Energy

Good excess energy management does more than just avoid waste—it helps you take advantage of everything your solar panel system has to offer. By exploring net metering, net billing, battery storage, and innovative solutions, you can develop a customized strategy that works for you.

If you’re considering installing solar and managing your excess energy, check out Solar Energy World. Since 2009, we’ve helped thousands of happy customers navigate the solar market and install custom solar systems. Reach out today to learn more about how you can implement these excess solar energy strategies or get started with a free solar estimate.