Understanding Net Metering: How It Works
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What is Net Metering?
Net metering is a billing arrangement that allows solar energy system owners to receive credit for the excess electricity they generate and send back to the grid. This credit can then be used to offset the electricity they consume from the grid when their solar panels are not producing enough power to meet their needs.
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How Does Net Metering Work?
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Solar Energy Generation: When your solar panels generate more electricity than your home or business is using, the excess energy is sent back to the grid.
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Metering: A bi-directional meter, also known as a net meter, measures both the electricity you consume from the grid and the excess electricity you send back to the grid. This metering allows your utility company to track both the energy you use and the energy you generate.
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Credit Accumulation: For every kilowatt-hour (kWh) of excess electricity your solar panels produce, you receive a credit on your utility bill. This credit is typically applied at the same rate that you would pay for electricity from the grid.
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Offsetting Electricity Usage: When your solar panels are not producing enough electricity to meet your needs, such as at night or on cloudy days, you can use the credits you've accumulated to offset the electricity you consume from the grid. This helps reduce your overall electricity costs.
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Annual True-Up: At the end of each billing period, usually annually, your utility company will reconcile any remaining credits you have accumulated. Depending on your utility's policy, you may receive a payment for any excess credits, carry them forward to the next billing period, or lose them.
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Benefits of Net Metering:
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Savings: Net metering allows you to save money on your electricity bills by offsetting the electricity you consume with credits earned from excess generation.
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Flexibility: Net metering provides flexibility by allowing you to use the grid as a virtual battery, ensuring you have reliable electricity even when your solar panels are not producing.
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Environmental Impact: By incentivizing the generation of clean, renewable energy, net metering helps reduce carbon emissions and combat climate change.
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Is Net Metering Available Everywhere?
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Net metering policies vary by location, and not all utility companies offer net metering or provide the same incentives. It's essential to check with your local utility company or solar provider to understand the net metering policies and incentives available in your area.
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Ready to Harness the Power of Net Metering?
Net metering is just one of the many benefits of going solar. Contact us today to learn more about how you can take advantage of net metering and start saving with solar!