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Where does your solar energy go?

• Energy democracy & policy

October 20, 2026

When sunlight hits your solar panels, it generates an electric current. This current travels through an inverter to your electric meter. When it goes back into your home, that’s called “self-consumption.” This means you’re using the electricity your system generated to power your lights and appliances.

But you won’t always use all of the electricity your system generates. Say you’re not home on a temperate day. Your lights are off. There’s no HVAC system drawing electricity. Your home is using less electricity than your system is generating. 

In this instance, the extra electricity goes out through your electric meter to be used by neighbors. Depending on where you live, you can earn a credit on your bill based on how much electricity you export.

How much of the solar electricity that you generate, will you use yourself?

Typically, you’ll end up using about half of the electricity your system generates. The rest will go out through your electric meter to be used by your neighbors. Our Solar Help Desk commonly gets questions about this from solar homeowners. Their solar monitoring application tells them their system generated 400 kWh (kilowatt-hours) that month. But on their bill, they only have credit for 200 kWh. That’s because they consumed the other 200 kWh themselves.

How do I consume more of the electricity I generate?

Depending on where you live, self-consumption may be a financially better option than earning credit from your utility. In this case, you’ll want to change when you run electricity-consuming devices like dishwashers or laundry machines. Some models have timers that allow you to set when these devices run.

Similarly, if you have an electric vehicle, you’ll want to charge it during the day. This way you’re using your own solar-generated electricity.

What if I want to keep more of my solar electricity?

There’s another way to self-consume: adding battery storage. There are several benefits to adding battery storage to your solar system.

If the power goes out, your solar system turns off. This is a safety measure to make sure no electricity passes through electrical wires as lineworkers repair them. If you have a battery, your system will send the electricity it generates there. This will help you keep at least some power coming to your home. Download our free battery guide to learn more about pairing solar and battery storage.

Having battery storage can save you money if your utility rates change depending on the time of day. These are called “Time of Use” rates. Fill your battery with electricity from the grid when it is cheaper and use that electricity when it is more expensive.

If you have a battery you may also be able to earn money from your utility through what is called a “Virtual Power Plant.” Virtual power plants connect thousands of small, customer-owned devices: solar panels, home batteries, smart thermostats, electric water heaters, and EV chargers. Together, they act as a coordinated resource when demand increases. Drawing energy from Virtual Power Plants  lowers costs for all customers because they limit the need to use more expensive electricity from plants that only run at times of high demand. When you participate in a Virtual Power Plant you agree to let your utility use some of the electricity you’ve stored during times of high demand. In return, you can earn a payment or credit on your energy bill. This helps you recoup your battery investment more quickly.