Net metering allows residential and commercial customers who generate their own electricity from solar power to sell the electricity they aren’t using back into the grid. Many states have passed net metering laws. In other states, utilities may offer net metering programs voluntarily or as a result of regulatory decisions. Differences between state legislation, regulatory decisions and implementation policies mean that the mechanism for compensating solar customers varies widely across the country.
Net metering is a billing mechanism that credits solar energy system owners for the electricity they add to the grid. For example, if a residential customer has a PV system on their roof, it may generate more electricity than the home uses during daylight hours. If the home is net-metered, the electricity meter will run backwards to provide a credit against what electricity is consumed at night or other periods when the home’s electricity use exceeds the system’s output. Customers are only billed for their “net” energy use. On average, only 20-40% of a solar energy system’s output ever goes into the grid, and this exported solar electricity serves nearby customers’ loads.
Giving Customers Control Over Their Electricity Bills
Net metering allows utility customers to generate their own electricity cleanly and efficiently. During the day, most solar customers produce more electricity than they consume; net metering allows them to export that power to the grid and reduce their future electric bills.
Advantages of Net Metering
Free energy produced from solar panels sounds good but saving and earning through these panels is even better.
- Own Electricity and Control Billing
Net metering not only enables you to produce electricity but also provides a control over billing process. It will regulate your billing and ensure a smart and most efficient use of solar PV panels installed at your place.
- Easy on the Wallet
For both residential and commercial use, net metering has a reasonable cost which is easy on your wallet. Considering its long-term benefits, net metering is a choice of smart solar users. Whenever you are going to select a solar system for home or office, net metering compliance must be in your mind.
- Best Utilization of 20% to 40% Output
Through net metered compliant solar system, almost 20% to 40% power output goes to the grid. If there is no net metering, this much amount of energy can be lost without any productive use. That is why net metering is recommended to the solar system owners for bringing more ease to their lives. Such a high ratio will earn more units from the national grid to be balanced in your consumer bill.
With net metering, you can save by going solar
Thanks to net metering, homeowners are credited for the energy that their solar panels generate at the same rate that they would pay to their utility. As a result, you can save tens of thousands of dollars on electricity costs over the lifetime of your solar energy system. Calculate your solar savings to get an instant estimate of just how much you can save with a solar energy system, or register your property to start getting quotes from local solar installers.