What Is Net Metering?

Net metering is a service provided by local utility companies that rewards renewable energy customers for sending power back to the grid. Residential and commercial solar customers can send excess energy to the grid in exchange for credits that offset their monthly electricity bill. At the end of the month, customers are charged the ‘net’ difference between the amount of energy they consume and the power they send to the grid. In fact, depending on the size of a PV system, net metering could potentially match the cost of a yearly electricity bill. (That’s hundreds of dollars saved each year!)

How Does Net Metering Work?

In order to use net metering, you first need a solar panel system. If you are interested in installing a solar PV system, contact us for a free quote. You will also need a bi-directional meter from the local utility company which accounts for the energy coming in and out of your system. This is essential for the utility company to track how much electricity you send to the grid. 

A Net Metering Example

In the middle of summer, your solar panel system generates 15 kWh of electricity during thec However, your home currently demands 5 kWh of electricity. During this hour, the extra 10 kWh of energy is sent through your meter back to the grid. The grid will then distribute this energy to nearby local utility customers. You will then receive a credit on your monthly bill for the energy you contributed. This 10kWh of electricity will be subtracted from your total energy consumed from the grid. 

The Benefits of Net Metering

Net metering was first created to incentivize businesses and residential homes to invest in renewable energy. By finding ways to cut costs, individuals are more likely to switch to solar energy . This has a lot of benefits for users and society as a whole. 

Economic Benefit

Net metering helps protect the grid by distributing energy locally. This prevents energy loss in long range electricity transmissions and reduces overall wear and tear on the grid. In addition, the deployment and adoption of solar energy power solutions has created the need for more jobs in the solar industry. This industry has helped local economies and businesses by bolstering sales. Net metering incentives also encourage individuals to invest in renewable energy sources that positively impact our environment.  visitors. For example, you may want to describe a team member's experience, what makes a product special, or a unique service that you offer.

Financial Savings

Start saving with solar panels as soon as the sun comes out. Solar panel start up costs can be offset by the many financial incentives offered to solar PV system owners. Net metering for solar energy helps homeowners and businesses save money on their electricity with roll over credits that can be used during the low producing months. Renewable energy consumers can also benefit from federal and local tax rebates. With these financial savings, solar panel systems can often be paid off within four to nine years after purchase. 

Self-Reliance

Investing in solar power is a big step towards energy self-reliance. A dependable PV system can help you produce enough energy for your home and enough additional energy that can be sent to the grid. For complete self-reliance, explore additional options of battery backup systems. 

To summarize, net metering has a lot of advantages 

Please feel free to contact us for more information if you still have questions and feel free to request us a quote!