Understanding kWh Banking

See how West Penn Power’s kWh banking system works throughout the year. Build credits in summer, use them in winter.

How kWh Banking Works

West Penn Power uses a kilowatt-hour banking system for net metering. When your solar panels produce more electricity than you use, the excess kWh are “banked” as credits. Later, when you need more electricity than you produce (like at night or in winter), you draw from your bank.

This system is highly favorable for solar customers because:

Interactive kWh Banking Visualization

Click on any month to see detailed production, usage, and bank balance information. This example shows a typical 8 kW system.

Understanding Your Solar Investment

What is kWh banking,
and how does it save you money?

Two quick concepts that explain how your solar system works with West Penn Power — and how you get credit for every watt you produce.

Concept 1

kW vs. kWh — what's the difference?

Your electric bill uses both units. Understanding the difference makes everything else click.

⚡
kW
Kilowatt · Rate of power
How fast electricity is flowing right now. Like a garden hose — kW is the water pressure. A 5 kW solar array is pumping out 5,000 watts of electricity at this instant.
🪣
kWh
Kilowatt-hour · Total energy
How much electricity was used or produced over time. kWh is the total water in the bucket. That same 5 kW array running for 4 hours produces 20 kWh of energy.

Your bill is mostly kWh. West Penn Power charges roughly $0.172 per kWh consumed.
The simple formula: kW × hours = kWh. A 10 kW system producing for 5 hours makes 50 kWh. That 50 kWh is what offsets your electric bill — not the kW rating alone.

Concept 2

How kWh banking works

Under Pennsylvania's net metering law, every kWh your panels send to the grid is banked — like miles on an airline — and applied to future bills at full retail value.

Your kWh bank — click any month to see details
Example: 8 kW system, Bedford County, PA
0 kWh in bank
Solar production
Home usage
Bank balance throughout the year
Month-to-month credit
$0.172/kWh
Every banked kWh offsets a future kWh at full retail — generation plus distribution. No haircut, no wholesale rate penalty.
How your bill drops
1 : 1
One kWh exported = one kWh wiped off your next bill. Your meter runs backward, and your bank grows automatically.

Concept 3

The annual May true-up

At the end of each PJM planning year (May), any leftover kWh still in your bank are paid out in cash.

Two very different true-up rates
Same bank balance. Very different check depending on your supplier.
West Penn Power (PTC) ✓
~$0.1094/kWh
Using West Penn as your generation supplier means leftover banked kWh are paid out at the Price to Compare.
Third-party supplier
~$0.05/kWh
With a third-party generation supplier, your true-up payout drops to wholesale rates — around $0.05 per kWh.
Real example: If you end May with 500 kWh still in the bank — with West Penn PTC you receive about $55. With a third-party supplier, you'd get roughly $25.
Net metering under 52 Pa. Code §75.13 applies to West Penn Power service territory. Rates shown are approximate and based on current West Penn Power Rate RS (generation ~$0.1094/kWh + distribution ~$0.0626/kWh). Consult Clearville Solar for a site-specific analysis.

Key Takeaways

Summer Surplus

Long sunny days mean your panels produce more than you use. This surplus goes into your kWh bank, building credits for winter.

Winter Withdrawal

Shorter days and higher heating needs mean you’ll draw from your bank. Those summer credits now offset your winter bills.

May True-Up

At the end of the PJM planning year (May), any remaining kWh in your bank are paid out in cash at the Price to Compare rate.

Ready to Start Banking kWh?

Let us design a system that maximizes your savings through West Penn Power’s net metering program.

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