What Is Net Metering?

The overuse of fossil fuels has led to global warming and increased extreme weather events. Solar energy offers a solution, becoming more efficient and viable due to technological advancements. Today, fewer, smaller PV panels can generate the same energy in hours that once required many large panels and a full day of sunlight. Lower installation costs, along with federal and state incentives, make solar energy more accessible to homeowners.

One significant advancement is in energy storage and usage, rather than in the solar panels themselves. Net metering plays a crucial role in this. But what is net metering, how does it work, and how does it benefit consumers?

Key Takeaways

• Net Metering, also known as Net Energy Metering (NEM), is a billing system that credits solar energy system owners for the excess electricity they generate and feed back into the grid.
• Net Metering allows solar users to reduce or eliminate their electricity bills, as they are billed only for their net energy consumption, making it financially advantageous.
• The benefits of Net Metering include reducing the need for backup generators and battery storage, easing pressure on the grid, minimizing network upgrades, and providing significant utility bill savings for solar system owners.

What is Net Metering?

Also referred to as Net Energy Metering (NEM), Net Metering is a power consumption billing system that credits those who have a solar energy system for the electricity they put into the grid.

Given that most solar power systems today are tied to the grid, if yours generates more electricity than you consume, the excess is sent to your utility company giving you credit for the electricity your solar energy system generated.

You can think of it as an incentive program, similar to getting a bonus at work, where there’s an exchange between you and the utility company.

More often than not, solar PV systems generate more electricity than most households use during the day. If your house is net-metered, the meter will run backwards and provide a credit against the electricity you use at night or any other time where your electricity use goes beyond the solar system’s output.

Keep in mind that you are only billed for your net energy use, and this is how most people with solar power systems end up paying nothing for electricity consumption.

How Does Net Metering Work?

With an understanding of what Net Metering is, here is an explanation of how it all works:

1. Your solar PV panel system generates the most electricity during daylight hours when most people are at work or school.
2. This excess electricity is fed to the electricity grid.
3. If your solar PV system is not producing adequate electricity, you can draw from the electric utility’s grid, just like before you went solar.
4. It is this back and forth between the grid and your system that ascertains your shortages are met and the excess power production is still utilized.
5. The total electricity consumption is monitored, and at the end of the month, you are only required to pay for the net power consumption.
6. If the energy your solar system generated is more than your household consumed during that month, the utility company will credit your bill, which is known as a solar panel bonus.

What Are the Net Metering Requirements?

The primary requirement for net metering is for your system to be grid-tied. This means it needs to be connected to the utility company to enable energy transfer from your solar power system to the utility. However, when you look at the benefits, this is not a significant concern.

What Are the Benefits of Net Metering?

Gets Rid of the Need for Backup Generator and Battery Storage

Unlike off-grid solar power systems, you do not need a battery storage system while utilizing net-metering as the additional power is fed to the utility grid. Also, it eliminates the need for generators as the grid ideally acts as a backup generator.

Reduces Pressure on the Grid

Residential solar PV systems benefit both utility companies and their users as they help minimize the amount of stress on the electricity distribution system.

Since solar users are not drawing power from the grid, but utilizing their own, there are fewer households drawing power directly from the grid.

In addition, when a solar power system sends your energy to the electric grid, that power is used by other non-solar consumers to meet their demands. This reduces the pressure from the utility plants even further.

Less Network Upgrades

Solar power users not only conserve energy, ensuring there’s adequate for everyone, but they ideally help power the electric grid.

The excess electricity from their solar systems is fed back to the grid, which lessens utility companies’ need to spend more money on infrastructure upgrades.

Also, it helps minimize transmission line congestion which can lead to blackouts and other inconveniences that call for repairs and upgrades.

Utility Bill Savings

Perhaps the best thing about net metering to solar users is the utility bill savings. This billing mechanism can substantially lower your monthly electricity bill. If you have a solar PV system that is big enough, you can potentially eliminate all your energy use costs.

This leads to tens of thousands of dollars in savings during the system’s lifespan. For instance, if your monthly bill was $100 on average, and your solar system covers all your electricity needs, that equates to $1,200 in savings for one year.

However, it’s important to note that your electricity bull might have some fixed costs that net metering may not be able to eliminate.

Case Study: Harnessing the Power of Net Metering

Background

Solar Panels Network USA has been a pioneer in delivering top-tier solar energy solutions to homeowners across the nation. Our commitment to sustainability and energy efficiency drives us to innovate continuously and provide our clients with the best solar technologies available.

Project Overview

One of our recent projects involved a suburban family looking to reduce their carbon footprint and lower their electricity bills. The family had an average monthly electricity consumption of 900 kWh, which resulted in a significant financial burden. They decided to invest in a solar panel system and were particularly interested in the benefits of net metering.

Implementation

Our team conducted a thorough assessment of the family’s energy needs and designed a solar PV system capable of generating 1,200 kWh per month. This system included high-efficiency solar panels and an inverter connected to the local utility grid, making it eligible for net metering.

During the installation, we ensured that the system was optimally positioned to capture maximum sunlight, thereby enhancing its energy output. We also took care to educate the family about how net metering works, explaining how their excess energy production would be credited back to them, reducing their net energy usage.

Results

The implementation of the solar PV system and net metering exceeded the family’s expectations. Over the first six months, their solar panels generated more electricity than they consumed during the day, allowing them to accumulate significant credits with their utility company. This not only reduced their electricity bills but also provided them with energy security during non-productive solar periods, like cloudy days or nighttime.

By leveraging net metering, the family saw an average reduction of 80% in their monthly electricity costs. Additionally, the environmental impact was profound, as the system offset approximately 1,200 pounds of carbon dioxide emissions per month, contributing to a greener planet.

Summary

Our experience with net metering demonstrates its tremendous value in making solar energy systems more economical and sustainable for homeowners. At Solar Panels Network USA, we are proud to offer solutions that not only save money but also support the global effort to combat climate change. Net metering is a vital component of this mission, enabling homeowners to maximize the efficiency and benefits of their solar investments.

Expert Insights From Our Solar Panel Installers About Net Metering

As a seasoned solar installer, I can attest to the financial benefits that net metering offers homeowners. Not only does it reduce electricity bills, but it also incentivizes the use of renewable energy. This system essentially turns your home into a mini power plant, providing energy savings and environmental benefits.

Lead Solar Installer

Net metering is a game-changer in the solar industry. It allows excess energy generated during the day to be credited back to the homeowner, which can be used later when the solar panels aren’t producing electricity. This not only maximizes efficiency but also supports grid stability.

Senior Solar Technician

Installing solar panels with net metering capabilities provides homeowners with a reliable way to manage their energy consumption and costs. By feeding excess energy back into the grid, customers can significantly lower their utility bills and contribute to a more sustainable energy system.

Solar Energy Consultant

Experience Solar Excellence with Us!

Trust in Solar Panels Network USA, where our seasoned experts deliver top-quality solar solutions for homes and businesses nationwide. With a legacy of countless successful installations and a commitment to sustainable energy, we’re your reliable partner in the solar journey. Ready for a brighter, eco-friendly future? Call us now at (855) 427-0058 and harness the power of the sun!

Conclusion

As you can see, there so many appealing benefits that net metering has to offer. If you are yet to join the party, it’s high time you did.