Net metering is a policy that permits solar and other renewable energy systems to export their excess power back into the grid, allowing you to recoup your investment in solar more quickly.
Additionally, it helps keep electricity costs down for all customers; however, its effects aren’t without controversy.
What is Net Metering?
Net metering is a utility billing strategy that tracks the excess solar energy generated on your property and the electricity purchased from the grid. These two distinct kWh flows are combined to produce an online-accessible net electricity bill.
Net metering policies are an effective way for customers with small on-site renewable energy systems (such as rooftop solar) to connect to the electric grid through their utilities companies. Furthermore, these policies guarantee customer-generators are compensated for producing clean, renewable energy on their properties.
Does It Work?
Net metering is a policy that permits customers with on-site renewable energy sources such as solar panels or wind turbines to send any excess electricity back to the utility company and receive credit at retail rates for what they purchased from the grid. This not only saves them money on their electric bill, but it helps ensure the stability of the electric grid during times of increased demand for energy.
Net metering credits vary based on where you live and the amount of energy your system produces during certain times of year. When adding electricity back into the grid during summer months, it’s worth more than when taking it from it during winter months.
Net metering also helps keep power costs down by eliminating the need for more expensive storage systems like batteries. Furthermore, it makes your home more energy-efficient by allowing you to draw only from the grid during peak demand periods.
Does Net Metering Pay You?
Net metering is the simplest and most popular way to take advantage of solar energy. In essence, it allows you to export excess electricity generated by your panels while receiving credit for it.
In most states, tax credits can be carried over from month to month or year to year. This can be especially advantageous if you generate more electricity during the summer than needed during wintertime.
In addition to saving you money on utility bills, solar powered homes also contribute to improving our local environment. They reduce carbon footprints and promote reliability within communities while creating jobs for solar installers and electricians. It may even result in higher property values as well as improved quality of life overall. Ultimately though, it’s up to you whether going solar is right for you; the more informed you are beforehand, the better equipped you’ll be to make an informed decision.
Does Net Metering Make the Grid More Complex?
Net metering is an invaluable resource to consumers to help reduce their energy expenses. It works by enabling solar power systems to export electricity back into the grid.
Excess energy helps reduce demand on the electric grid, especially during times of high electricity demand.
Net metering poses some unique challenges to the grid, however. For one thing, how energy is credited for additional production varies between states.
Second, it may be difficult to create rates that adequately reward customers for the additional benefit of rooftop solar.
Third, it remains uncertain how much of the grid’s capacity will be utilized for distributed generation (like rooftop solar) in the future.
Good news: there are multiple solutions to these problems, such as the implementation of a grid participation charge and decoupling mechanisms. These reforms would break the connection between utility profits and sales, encouraging maximum adoption of distributed generation technologies like solar.