What Is Net Metering?
If you’re new to the solar world, you may have heard the words “net metering” thrown around and wondered what this term means.
Net Metering is a system in which solar panels (or other renewable energy generators) are installed at a home or business, and then connected to a public-utility power grid through a meter that spins forward and backwards depending on whether you are receiving electricity from the grid or sending it to the grid.
The net metering law requires the utility to create a solar bank for all solar power generating home that allows customers to offset their utility cost during low producing months by using solar credits they have earned during high producing months.
Net metering’s benefits are many and diverse.
First, consumers can reduce or even eliminate their monthly power bill. Each solar power generating home can help power other homes in their community while the solar home earns credits for their solar bank. Ultimately, communities using renewable solar energy can potentially produce all the electricity they need. Plus, it encourages and enables consumers to become involved in alternative energy production, help protect the environment and preserve natural energy resources.
Net metering also has the benefit of eliminating the need for a battery storage system, or a backup generator for use when there’s no solar power available. This means the cost of powering the home or business during the winter months can be offset by the solar power the property produced during the months that have longer days and more sun. Net metering’s benefits make a solar pv system well worth the investment.