21 Jul Understanding Net Metering: Empowering Homes with Solar Panels
Net metering has revolutionized the way homeowners with solar panels interact with the electricity grid. This innovative policy allows solar panel owners to not only generate clean energy for their homes but also contribute to the grid and earn credits for the excess electricity they produce. Below, we delve into the concept of net metering and explore how it works, empowering homeowners to make the most of their solar panel installations.
Click on the image below to see the impact of net metering:
The Basics of Net Metering:
Net metering is a billing arrangement between homeowners and utility companies that enables the measurement and compensation for electricity produced by solar panels. When solar panels generate electricity, it is first consumed by the homeowner’s electrical appliances and systems. If the panels produce more electricity than is immediately consumed, the excess is fed back into the grid. Net metering allows homeowners to be credited for this surplus energy, effectively “spinning the meter backward.”
Two-Way Energy Flow:
Net metering facilitates a two-way energy flow between the home’s solar panels and the electricity grid. During the day, when solar panels produce more electricity than the home requires, the excess energy is sent to the grid. The homeowner receives credit for this surplus energy, which can be utilized when the panels are not generating electricity, such as during nighttime or cloudy days. This dynamic exchange ensures a seamless and efficient energy balance.
Metering and Billing:
To enable net metering, a special bi-directional meter is installed by the utility company. This meter is capable of measuring the electricity consumed from the grid as well as the surplus electricity sent back to the grid. The meter records the net energy consumption, which is the difference between electricity drawn from the grid and the electricity exported to the grid. The homeowner is billed based on the net energy consumption, effectively offsetting the cost of electricity drawn from the grid with the credits earned from surplus energy generation.
Maximizing Benefits:
Net metering offers significant benefits to homeowners with solar panels. Firstly, it allows them to reduce their electricity bills by offsetting the cost of electricity drawn from the grid with the credits earned from surplus energy production. Secondly, it incentivizes homeowners to install appropriately sized solar panel systems, as larger systems can generate more surplus energy and, thus, earn more credits. Lastly, net metering promotes a greener energy landscape by encouraging the generation of clean, renewable energy and reducing the overall demand for fossil fuel-based electricity by harnessing the power of the sun!
Learn more about the benefits of net metering by talking to us today!