How Net Metering Benefits your Home Solar Setup (2024)

Your electricity generation from solar isn’t consistent throughout the year. During the summer you’ll produce much more energy than you need, and during nights and some winter days you may need to pull electricity from the grid. Net metering is a billing agreement with your power company that ultimately ensures you can power all of your energy needs with solar. Under Net Metering, you will receive credits from your power company for any excess electricity your solar panels generate.

When you pull energy from the grid, like at night or on some winter days, the credits you generated during sunlight hours will cover those costs of power. This system ensures that you are fairly compensated for the energy your solar panels produce. Solar can cover 100% of your power bills when coupled with the Net Metering program.

Combining your solar system with Net Metering is how you can achieve a Net-Zero home. Net-zero is when you produce 100% of the energy you use during a year, ultimately meaning you won’t owe a power bill.

How Net Metering Works:

1. Solar Production: During the day, your solar panels generate electricity. When the
   sun is shining brightly, your panels may produce more electricity than your
   household needs at that moment.
2. Sending Excess Energy to the Grid: Any surplus electricity that your home doesn’t
   use immediately is sent back to the grid. This excess energy isn’t wasted; instead, it
   contributes to the overall electricity supply in your area.
3. Earning Energy Credits: In exchange for the electricity you send to the grid, your
   utility company provides you with energy credits. These credits appear on your
   electricity bill and will be used to offset the cost of the electricity you consume
   when your panels aren’t producing enough power, such as at night.
4. Using Credits: When your solar panels aren’t generating enough electricity to meet
   your needs, you can draw from the grid. The energy credits you’ve accumulated
   offset the cost of this electricity, reducing your overall bill.

Net metering offers several significant benefits for solar energy users:

1. Lower Electricity Bills: By earning energy credits for the electricity your solar
   panels send to the grid, you can substantially reduce your electricity bills by up to
   100%. This makes solar energy an even more cost-effective option for homeowners.
2. Maximizing Solar Investment: Net metering ensures that you get the most out of
   your solar panels by compensating you for all the electricity they produce. Even if
   your panels generate more energy than you use, you won’t lose that extra power—
   it’s credited to you for later use.
3. Time-Of-Use Billing Plans: In a Time-of-Use billing plan you are charged different
   amounts for electricity at different times of day. Solar generation is always at peak
   rate costs during the day, and you sell you energy back to the grid at that higher rate.
   This means you use electricity more efficiently by selling your excess energy at a
   high rate back to the power company, and then using your energy credits at a lower
   rate during the night and evening.
4. Environmental Impact: By feeding excess solar energy back into the grid, you’re
   contributing to the overall supply of clean, renewable energy. This helps reduce
   reliance on fossil fuels and decreases your carbon footprint.

Net Metering, especially with Time-Of-Use billing plans, will help you make the most of your home solar system. Net Metering makes it easy for a home solar system to reach Net- Zero status and cover up to 100% of your power bills. With Time-of-Use billing you get to automatically sell your excess electricity production back to the grid at high rates, and then at nighttime you earned energy credits will cover your usage at lower nighttime rates.

Net metering policies can vary by location, and some utilities may have different rules about how credits are calculated or how long they can be carried over.

Our Solar Specialists and Project Managers can cleanly walk you through the steps of going solar and signing up for your local Net Metering program, as well as make sure you maximize the value of any other government programs in your area. We’ll also get you started on the vital first step of acquiring a tailor-made solar proposal for your personal energy needs at home.

Schedule a consultation for our solar specialist’s expert guidance here.

• #ElectricityBills, #EnergySavings, #GreenEnergy, #HomeSolar, #NetMetering, #NetZero, #SolarEnergy, #SolarPower, RenewableEnergy, SustainableLiving

On Key