Complete Guide to Net Metering in Palm Beach Gardens
- Blue Energy Electric
- Sep 23
- 9 min read
When homeowners in Palm Beach Gardens think about going solar, the first question they ask is simple: "If my panels produce more energy than I use, what happens to the extra power?"
That’s where net metering comes in. It’s the policy that allows you to send excess solar electricity back to the grid—and earn credit for it. Whether you're planning to install solar panels or already have a system in place, understanding how net metering works is key to maximizing your return and minimizing surprises on your FPL bill.
At Blue Energy Electric, we specialize in designing solar systems that comply with FPL’s net metering policies and meet Palm Beach County permitting codes. We’ve helped dozens of homeowners throughout the region install and optimize their solar and battery systems.
Call Blue Energy Electric at 772-232-6594
What Is Net Metering and Why Does It Matter in Palm Beach Gardens?
Net metering allows homeowners with solar systems to connect to the electric grid and receive energy credits for the extra electricity their system generates. This is managed using a bidirectional meter installed by the utility provider—in this case, Florida Power & Light (FPL).
If your panels produce more electricity than your home uses during the day, that excess is fed back to the grid. FPL tracks how much you’ve exported, and applies it as a kilowatt-hour (kWh) credit to your bill. That means your extra generation can offset your nighttime or cloudy-day usage.
This system makes rooftop solar more affordable and efficient, especially in high-sunlight areas like Palm Beach Gardens, where solar production often exceeds daily household usage.
Net Metering Policy: What the Florida Law Requires
The foundation for net metering in Florida comes from Florida PSC Rule 25-6.065, which mandates that investor-owned utilities like FPL must offer net metering to eligible customers. Here's how the state breaks it down:
Key Provisions of the Rule:
Eligibility: Any customer who owns a renewable generation system (such as solar) can apply.
System Size Limit: Up to 2,000 kW (2 MW) — which easily covers all residential systems.
Meter Requirements: FPL replaces your existing meter with a revenue-grade bidirectional meter.
Billing Cycle: Net metering credits are calculated monthly, applied to the next bill.
Year-End Rollover: Excess credits in December are not rolled into the new year, but may be cashed out at a lower rate (wholesale/avoided cost).
This statewide rule ensures a consistent legal framework, but each utility—including FPL—can define its own specific tiers, application process, and requirements.
Understanding FPL’s Net Metering Tiers and System Limits
If you’re a homeowner in Palm Beach Gardens, you fall under FPL’s implementation of this rule. FPL classifies solar systems into three tiers, and the process you follow depends on your system size.
FPL Tier Classification:
Tier 1:
System size: ≤10 kW (AC)
Easiest approval, no insurance requirement
No application fee
Tier 2:
Size: >10 kW up to 100 kW (AC)
Requires $1 million liability insurance
May involve additional review or fees
Tier 3:
Size: >100 kW up to 2,000 kW (AC)
Commercial-grade systems
Requires $2 million liability insurance and stricter requirements
Important Notes on Sizing:
FPL uses the AC nameplate rating to categorize systems, calculated as DC × 0.85 (to reflect inverter losses).
Your system size should not exceed ~115% of your home’s previous 12-month electricity usage.
Systems near or above 90% of usage may trigger additional scrutiny or documentation requirements.
These guidelines are critical when planning a solar installation. Oversizing can lead to regulatory issues or poor financial return if your overproduction is not used effectively.
Interconnection & Safety Requirements: What PBG Homeowners Need to Know
Before you begin producing power, your system must be safely connected to the grid. FPL requires specific safety and interconnection standards, especially for systems in Tier 2 and 3.
Key Requirements for Interconnection:
Inverter Type: Must be utility-interactive and anti-islanding (automatically shuts down during outages).
Disconnect Switch: Tier 2 and 3 systems must include a manual, visible AC disconnect mounted near the utility meter.
Application Pre-Approval: All systems must be approved before installation begins.
Inspection: After installation, the system must pass inspection by your local building department (Palm Beach County or PBG city inspectors).
This process ensures safe operation for both the homeowner and utility workers, especially during outage events or emergency maintenance.
How Net Metering Affects Your FPL Bill in Palm Beach Gardens
Once your solar system is connected and enrolled in FPL’s net metering program, your monthly electric bill begins to reflect a different structure. Instead of paying for total energy used, you’re billed for the net difference between what you consume and what you generate.
How Monthly Credit Works
Each month, your excess generation (in kWh) is tracked by your bidirectional meter. If your system produces more than you use, the extra energy is stored as a kWh credit. These credits roll forward to the next month and are used to offset future electricity usage.
If you use more energy than you generate → you pay the difference
If you generate more than you use → credits roll over to the next month
FPL’s net metering guidelines explain that credits apply to energy charges only, not to fixed or demand-based fees.
What Happens at the End of the Year?
One important detail to understand is how FPL handles unused solar credits at the end of the year.
The net metering year ends in December
Any remaining kWh credits are cashed out at FPL’s “avoided cost” rate, which is lower than the retail rate
These credits do not carry into the next calendar year
In other words, if you overproduce for much of the year and still have credits left in December, FPL compensates you—but at a reduced value.
This is why oversizing a system beyond your energy needs can reduce your financial return. It’s more strategic to design your system to match usage rather than constantly overproduce.
Base Charges and Minimum Billing
Even if your solar system generates enough energy to completely offset your usage, you’ll still have a minimum bill.
FPL requires all net metering customers to pay a $25 minimum base bill each month. This charge helps cover fixed grid costs and infrastructure maintenance. It applies regardless of how much solar energy you export or use.
Billing Summary Example:
Month | Solar Production | Energy Used | Net Usage | Bill Type |
January | 800 kWh | 700 kWh | -100 kWh | Credit rolls forward |
July | 850 kWh | 950 kWh | +100 kWh | Credit used from January |
December | 900 kWh | 700 kWh | -200 kWh | Remaining credits cashed out at avoided cost |
Every Month | — | — | — | $25 minimum base bill applies |
What’s the Net Metering Application Process Like in Palm Beach Gardens?
If you're working with a certified installer like Blue Energy Electric, much of the application process will be handled on your behalf. Still, it’s helpful to understand the required steps.
FPL Net Metering Application Steps:
Pre-Approval:
Start by submitting a net metering application through FPL’s Net Metering Portal. Approval must be granted before installation.
Sign Interconnection Agreement:
Once approved, you’ll sign an agreement that outlines your rights and responsibilities.
System Installation:
Your installer completes the solar system build per approved design.
Inspection:
After installation, your system is inspected by the Palm Beach County or PBG building department to ensure code compliance.
Upload Final Documents:
You or your installer submits the signed permit and inspection documents to FPL.
Meter Upgrade:
FPL installs a bidirectional meter at your property.
Permission to Operate (PTO):
After all checks, FPL gives written permission to activate your system under net metering.
Note: If you already have a solar system, but it wasn’t enrolled in net metering, you still need to submit the application and follow this process to activate full crediting.
Do You Need Insurance to Qualify?
For most residential systems in Palm Beach Gardens, insurance requirements are minimal or non-existent, depending on system size.
Insurance Requirements by Tier:
Tier 1 (≤10 kW AC):
No liability insurance required
Most common for single-family homes
Tier 2 (10–100 kW AC):
Requires $1 million liability coverage
May apply to large homes or small commercial sites
Tier 3 (>100 kW AC):
Requires $2 million liability insurance
Typically used for larger commercial installations
This is another reason why most homeowners in PBG stay within Tier 1 sizing—it minimizes complexity and regulatory hurdles.
The Real Impact of Net Metering on Your Solar Investment
Net metering plays a major role in solar return on investment—especially when paired with a properly sized system. It allows you to:
Use your solar production to reduce electricity costs year-round
Offset peak usage months (like summer) with credits from spring or fall
Avoid wasting energy during sunny, low-usage periods
However, to get the most value from net metering, your system needs to be designed carefully. Overproduction, poor seasonal matching, or exceeding sizing limits can lead to financial inefficiencies.
That’s why we recommend working with local experts who understand FPL rules, Palm Beach permitting, and net metering tiers—like the team at Blue Energy Electric.
Call 772-232-6594
Net Metering Risks, Limitations, and Policy Uncertainty in Florida
While net metering provides strong benefits for solar homeowners in Palm Beach Gardens, it’s not without risks. Florida’s policy framework has remained mostly stable—but it has faced repeated legislative challenges in recent years.
What Are the Main Risks?
Annual Credit Expiration:
Any unused kWh credits in December are cashed out at a lower wholesale rate, which reduces your effective savings. Overproducing during cooler months may result in lost value.
Future Policy Changes:
Although Florida has not passed legislation to reduce net metering compensation, multiple proposals have been introduced in recent years. As SolarReviews notes, utilities argue that solar owners shift grid maintenance costs onto non-solar customers, creating political pressure to reduce payouts.
System Oversizing Consequences:
Oversized systems beyond 115% of annual usage may result in:
Reduced financial returns
Scrutiny from FPL during approval
Wasted credits at year-end
These concerns make system design and monitoring critically important for long-term success.
The “Cost Shift” Debate and Public Opinion
One of the biggest policy threats to net metering is the cost shift argument, which claims that solar customers benefit from the grid but pay less toward its upkeep. This issue is at the center of several policy discussions.
A Palm Beach Post opinion article questioned whether solar customers are being unfairly subsidized by non-solar users. However, consumer advocates counter that:
Rooftop solar reduces grid load
Encourages local generation
Lowers long-term infrastructure needs
For homeowners, this means net metering may change in the future—even if current benefits remain strong. Designing systems for maximum self-consumption and flexibility will offer better long-term protection.
Best Practices for Homeowners Using Net Metering in Palm Beach Gardens
Whether you're designing a new solar system or optimizing an existing one, following these best practices can improve your net metering outcomes.
System Design Tips
Avoid Oversizing: Stay within 100–115% of annual usage to avoid wasted credits.
Match Seasonal Load: Balance system output to match your seasonal usage profile.
Add Battery Storage (if needed): Batteries don’t enhance net metering credits, but they allow you to store excess power for later use, especially valuable during outages.
Monitoring and Billing
Track Monthly Usage vs. Production: This helps avoid year-end surprises.
Understand the $25 Minimum Bill: Even with net-zero consumption, this base charge remains.
Review Your FPL Bill Carefully: Make sure net metering credits are being applied properly.
Regulatory Compliance
Ensure All Permits Are Finalized: Local AHJs in Palm Beach Gardens and Palm Beach County require complete inspection and documentation.
Use Certified Installers: Blue Energy Electric handles all net metering applications and compliance steps on your behalf.
Local Insight: Net Metering in Palm Beach County
Palm Beach Gardens falls under FPL’s service territory, and local inspection is managed through Palm Beach County’s permitting office. According to the county’s solar energy page, the area is actively streamlining permitting for solar adoption.
Key Local Facts:
Permit turnaround in Palm Beach Gardens is generally faster for systems designed by experienced contractors.
Systems must comply with wind uplift, electrical, and fire safety codes relevant to hurricane zones.
Palm Beach County supports solar adoption as part of its climate resilience strategy.
Working with a company that understands both state-level net metering rules and local permitting nuances is critical to a smooth and compliant installation.
How Blue Energy Electric Helps Palm Beach Gardens Homeowners
Blue Energy Electric specializes in solar and battery installations that are fully optimized for net metering and built for Florida’s environment. We handle the entire process:
System sizing and engineering
Net metering applications with FPL
Permit approvals and inspections
Bidirectional meter scheduling
Ongoing support and solar maintenance
By using a local installer with knowledge of Palm Beach Gardens regulations, you avoid costly mistakes and maximize the performance and value of your system.
Call us at 772-232-6594
Final Thoughts: Is Net Metering Still Worth It?
Yes—for now, net metering remains one of the most important financial tools for making solar a smart investment in Florida. While policy changes are always possible, current rules allow homeowners in Palm Beach Gardens to offset their energy costs and reduce grid dependence.
However, your long-term value depends on:
Choosing the right system size
Monitoring production and credits
Staying compliant with FPL and local permitting
Avoiding overproduction that leads to wasted credits
Whether you're just starting or optimizing your current system, Blue Energy Electric is ready to help you take full advantage of Florida’s net metering benefits.
Comments