What is Net Metering?
Net metering is a process that’s commonly used in solar energy that ensures that owners of solar energy systems are able to spread some of the renewable energy that they can generate. Utility companies are often extremely accepting of this solution as the excess energy that’s produced by solar panel systems can be sold back to the grid for the best in profits. Sending excess power back to the grid in return for energy credits can help to save you hundreds each year and thousands over the lifespan of a solar system.
What Is Net Metering?
Net metering is a system provided by your local utility company that will reward you for producing renewable energy. You’ll be able to continually send power back to the grid through a commercial or residential solar system and the excess energy that send back to the grid will be exchanged for credits to offset monthly electricity bills. Customers will be charged the net difference for their electricity bills at the end of the year and they may receive a check from the utility company to pay out the balance for the extra power that they’ve generated.
How Does Net Metering Work?
In order to use a net metering system, you’ll need to install a solar panel or system of solar panels throughout your home. Installing a PV system and contacting your local utility company will let you access a bidirectional meter. A bidirectional meter is different from a traditional meter for your power. This system will check the energy that’s going into your home as well as the energy that’s leaving the system. This meter is going to be essential to making sure that the utility company can measure the electricity that is sent out to the grid.
How Net Metering Works As An Advantage
Net metering can come with its fair share of advantages. The system started out as a way to incentivize solar as an option for home and business owners but it also comes with some benefits over time. Here are some of the best ways that net metering can benefit you:
Economic Improvements
Net metering will help to protect the grid and distribute energy in a more sustainable way. The financial incentive can stimulate local economies and reduce the load on the grid as well. Including the option of solar power can make sure that there is more renewable energy and improvements to what makes solar special.
Financial Savings
As soon as solar panels are installed, they are locking in the price of electricity for a home or business owner. Solar start-up costs can be an initial investment but it can also make sure that you are facing the same costs for electricity over the years to come. Renewable energy can come with a series of rebates and the cost savings you can experience will ensure that the system can be paid off 4-9 years after purchase with a set cost for the full system.
Consistent Energy
With net metering, you can make sure that you will have access to consistent energy. Rather than using a system that keeps solar energy in small batteries or having to run a very large solar system, you can have a series of solar panels that you add over time. Net metering ensures that you will have access to energy from the grid and with a consistent supply even when you are drawing power on a cloudy day.
If you are interested in learning more about net metering or harnessing the full potential of a solar installation, contact us today.
