Understanding Net Metering: A Simple Guide


It's time we talk about net metering.   Net-what?  In this post, we'll dive into the concept of net metering, its benefits, and how it works.

What is Net Metering?:

Net metering is a billing arrangement that allows homeowners and businesses who generate their own electricity .... using solar panels or other renewable energy systems .... to get 'credit' for excess electricity they have produced, and sent BACK to the grid.   Depending on where you are located, sometimes this is optional, sometimes this is REQUIRED.... and depending on WHEN you switched power sources, your price or credit may vary significantly.  

How Does It Work?:

  1. Excess Generation: When your solar panels produce more electricity than you need, the excess is sent back to the power grid.
  2. Electricity Consumption: At times when your system isn't producing enough electricity (e.g., at night), you can draw power from the grid.
  3. Billing: At the end of the billing period, you're only billed for the "net" amount of electricity used, that is, the difference between the energy consumed and the energy produced.

Benefits of Net Metering:

  1. Savings: By sending excess electricity back to the grid, you can offset the costs of the electricity you draw from the grid, leading to reduced energy bills.
  2. Encourages Renewable Energy: Net metering provides an incentive for homeowners and businesses to install renewable energy systems, promoting a greener and more sustainable future.
  3. Grid Health: Excess energy fed back into the grid can be used by others, reducing the overall strain on the grid and decreasing the need for additional energy production.

In Short

Net metering is a positioned as a win-win solution for both consumers and energy providers.  But caution to explore thoroughly for your unique grid participation.  A good place to start is by speaking with a local solar professional who covers your territory or area on the grid.  They will be equipped with all the relevant local information for you to compare scenarios.  

Or, simply start a chart with Ray, The Solar Plug and he can point you in the right direction.