What is Net Metering
A method of electric invoicing known as Net Metering allows you to store extra energy generated by your solar panel system on the electric grid. With net metering, you receive credit for the energy your solar panels produce but that you don’t use. When the weather is gloomy or rainy and your panels aren’t producing enough energy, the utility grid will supply energy to your home and deduct it from the credits you’ve built up over time. You will only be charged for your “net” energy usage as a solar customer. The fundamental principle of the solar industry is net metering, also referred to as NEM or net energy metering.
How does Net Metering work?
Consider installing a solar panel system that is net metered. The electricity is delivered back to the grid when your solar panels are producing more than you are using at any given time of the day, which flips your electric meter around. During the night or on overcast days, if you use more electricity than your solar panels are producing, you draw it back from the grid, moving your meter forward. You are charged the difference between what you put on the grid and what you take off the grid at the end of the month or year.
You can generate enough electricity with a solar energy system of the right size to cover your home’s annual electrical needs. The quantity of electricity your solar panels generate will fluctuate throughout the year, though, with summer months having more sunshine and winter months having less because the sun is lower in the sky and sets earlier. By giving you credit for the extra electricity your Solar Panels generate so you may utilize it later, net metering enables you to take into account these seasonal variations in solar production.
Why Does Net Metering Exist?
The two main goals of net metering are to increase the adoption of solar power across the nation and to benefit utilities and the entire electrical grid from the addition of low- to no-cost solar energy to the grid. In particular, during the summer months when electricity is frequently most expensive on the hottest-and sunniest-days of the year, solar energy can assist balance the cost of acquiring electricity from other supplies.
How Does Electricity Bills Work with Net Metering?
Generally speaking, most households will have extra electricity production in the summer and more grid usage in the winter. When you produce more than you need, your utility won’t give you a monthly check because these production variances are quite predictable. Instead, you will accumulate extra credits over the course of the summer so that you can use them as needed at night and in the winter. Even if you produce significantly more energy than you use in certain months and significantly less in others, with the appropriate design, your system can generate enough power to match your annual electricity consumption.
You will be given a credit depending on the net number of kilowatt-hours you contributed back to the grid if your solar power system produces more electricity in a month than you use. You must purchase electricity from your utility to make up the difference if you generate less electricity than you consume in a given month. In such cases, you would only be responsible for paying for the electricity you really consume.
Conclusion
The best solar policy is net metering since it enables you to store every unit of Solar Energy you generate and consume it from the grid at a later time. In fact, by reducing your reliance on the grid, net metering allows you to save tens of thousands of dollars over the course of your solar panel installation.
Meta Description
This blog post is all about Net Metering, a new technology that allows you to save more energy. This works through Solar Panels and Solar energy. It is a great way to get savings on your monthly or yearly electricity bills!