Net metering is a way for you to get credit for the electricity you generate on your solar system. It’s not just about knowing that how much electricity you are generating, but also, how much money you are saving by having a residential solar PV system!
What is Net Metering
Net metering is the term used to describe the power you generate on your solar system. Instead of getting paid for the power you feed into the grid, you get a credit to offset the energy your home consumes. If designed correctly, the amount of solar produced should equal the amount of electricity your home consumes!
However, there are also net metering opportunities that allow you to sell energy back to the traditional power grid; the net amount gets charged against the cost of the electricity. The alternative to overproduction would be installing a small battery to store some of the excess energy you generate.
How does Net Metering work?
All solar systems have a net metering component; this is a term used to describe the monetary amount you get for the electricity you generate from the solar system. Usually, the amount of electricity you generate is equal to what you pay for your electricity on a monthly basis. And any credit you don’t use can be banked, and used for the next month’s electricity use. Net metering is a contractual relationship. If your net metering credit does not match up to what you have been paying for the amount of electricity that you use in a month, your company generally has an obligation to return it.
What are the pros of having a Net Metered system?
There are a couple of reasons you want to get into net metering.
First, the system can be deducted from your home’s energy bill each month, making the whole system free to use! If you are a small or large business with solar, it not only makes financial sense, but can also encourage customers to choose your business instead of one that does not have a net metered system. If you have a net metered system, your business can grow and improve, and you can charge more money for the electricity you’re using.
Net metering also has the benefit of guaranteeing your customers that you are making use of their electricity, and if you don’t, then you risk losing them. Having a net metering system means that you are keeping more of your company’s money in your hands. This means that you can have more money in the company to help your growth and your employees’ salaries.
More Benefits of Net Metering
There are a lot of benefits to be had with net metering. With net metering, you are trading time-of-use electricity with the utility in return for the higher energy you are producing at night and during the winter season.
Generally, solar electric panels pay for themselves in the first few years. In terms of electricity alone, your home should last for decades. If you are working from home and running computers and other devices at all times, you can use your solar electric panels to help you to save a lot of money on electricity!
The cost of solar panels changes every year. The more income you have and the larger your home, the more likely you are to buy a solar panels. Because the costs are changing, it’s important to keep an eye on them.
Conclusion: think before you choose to net meter!
So, what are the questions you should ask a solar company or utility before making a decision to net meter?
What types of payback programs do you offer? What will you do to make sure that I am able to receive the payment for the extra electricity it will be producing from your energy? Is there an extended warranty if something breaks? What are the rates of service and how much does it cost?
If you are interesting in having a solar energy system installed, find out more about the panels, but also, the programs designed to help you save money!
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