Net metering is a policy that allows customers who generate their own electricity, such as with solar panels, to receive credits on their utility bill for any excess energy they produce and feed back to the grid. Essentially, it allows customers to receive the full retail value for the electricity they generate, and to offset their energy costs.
The way net metering works is that the utility company installs a special meter, often called a bi-directional meter, that can measure the flow of electricity in both directions. When the customer generates more electricity than they use, the excess is fed back to the grid and the customer receives credits on their utility bill. When the customer uses more electricity than they generate, they receive electricity from the grid and pay for it at the retail rate. At the end of the billing period, the customer’s bill is determined by the net amount of electricity they have used.
Here are some of the benefits of net metering:
- Save money on your energy bills: Net metering can help you to save money on your energy bills by offsetting the cost of electricity that you buy from your utility company.
- Reduce your reliance on fossil fuels: Net metering can help you to reduce your reliance on fossil fuels by generating your own electricity from solar energy.
- Improve the reliability of the grid: Net metering can help to improve the reliability of the grid by providing a source of renewable energy during peak demand times.
- Support the development of solar energy: Net metering helps to support the development of solar energy by making it more affordable for homeowners and businesses to install solar panels.
Net metering can be a great way for solar customers to maximize the value of their investment and reduce their reliance on the grid. It also allows them to generate clean, renewable energy, and reduce their carbon footprint. However, the specifics of net metering vary from state to state, and even from utility company to utility company. Some states have implemented net metering policies, but with caps and/or reductions in the credits paid. It’s important for customers to check with their local utility company to understand the specific net metering policies and regulations that apply to their area.
If you are considering installing solar panels, net metering is a great way to save money on your energy bills and reduce your reliance on fossil fuels. It is also a great way to support the development of solar energy.
Featured Posts
Are Lithium- ion Batteries Going to End Up in Landfills?
Lithium-ion batteries are remarkably recyclable. Thanks to advancements in recycling technology and processes, these batteries can be broken down and…
Unveiling Solar Financing Solutions
Financing your solar journey has never been more accessible or advantageous with low interest rates depending on your credit score,…
SRP Raises Rates Again
SRP Raises Rates Again SRP Raises Rates Again, Signaling More to Come In a move that has caught the attention…
