A Beginner’s Guide to Solar Savings & Net Metering

Net Metering: Lower Bills, Clean Energy, and a Greener Future!

If you’re new to solar energy, familiarizing yourself with net metering can be a key step to fully understanding the benefits of solar. Here’s an idiot-proof definition of net metering:

Net metering is an arrangement between you with solar on your rooftop, and the utility company. Solar panels produce more electricity than your home needs, so the extra from your solar panels goes back into the grid for other people to use. And in return you get credits on your electricity bill for the excess energy that you’ve contributed.

Here’s the fun part: when your solar panels aren’t producing sufficient electricity (e.g., at night, or on cloudy days), you can use those credits to balance out the electricity you pull from the grid. It’s like bringing home a virtual battery to capture energy that you didn’t consume immediately. Net metering saves you money because you’re basically trading the surplus energy you produce for the power you require from the grid. This translates to lower energy bills and more effective use of renewable energy.

But net metering isn’t only about saving money. It also makes solar more attractive, which spurs others to install it because the investment is even better. By producing your own clean energy, along with balancing everything with net metering, you are not just lowering your carbon footprint but also helping build a greener and more sustainable energy ecosystem for all.

So if you’re thinking about installing solar power, net metering is your friend — an easy but effective way to optimize your solar panels.

Net metering is a billing mechanism that facilitates a two-way flow of electricity between a solar energy system owner and the utility grid. When a solar panel system generates more electricity than the home or business consumes, the surplus is sent back to the grid. This excess energy is then used by other customers connected to the grid.

In return for this exported energy, the solar system owner receives credits on their electricity bill. These credits, often referred to as net metering credits, can be used to offset the cost of electricity consumed from the grid at times when the solar panels are not producing enough energy, such as at night or during cloudy days.

The value of these credits varies depending on the utility and the specific net metering policy in place. Some utilities provide credits at the retail rate of electricity, while others may offer credits at a lower rate. The credits may also have a rollover policy, allowing unused credits to be carried over to future billing periods.

Net metering provides several benefits to both solar system owners and the overall energy grid. For solar system owners, it can significantly reduce electricity bills and provide a faster return on investment for their solar panel system. It also promotes energy independence and reduces reliance on fossil fuels.

For the grid, net metering helps to integrate renewable energy sources and reduce the need for new power plants. It also improves grid stability and reliability by providing a distributed source of electricity. Additionally, net metering can create jobs in the solar industry and stimulate economic growth.

Net metering remains a popular policy in many states and countries, although utilities are phasing it out in areas where solar has been prevalent for a long time….so act now to take advantage of it. Anyone with solar will continue to enjoy the fruits of Net Metering by being grandfathered in. To learn more, watch the video below.