Understanding Net Metering: How You Can Save More with Solar Power
If you’ve been thinking about clean energy for your home, you’re likely aware of the many benefits of investing in a solar power system. Solar energy is clean, renewable, and can save you money in the long run. But did you know that you can essentially “sell” surplus power that your solar system generates back to the grid?
In this blog, we’ll break down net metering, how it works, and how homeowners can get even more value from their solar power systems.
What is Net Metering?
Net metering is a billing arrangement that allows homeowners with solar power systems to sell the excess electricity they generate back to the utility company. When your solar panels produce more electricity than your home needs, that surplus energy is sent to the grid. The utility company then credits your account for this energy, which can be used to offset the power you draw from the grid at times when your solar system isn’t producing enough (like at night or on cloudy days).
How Does Net Metering Work?
Here's how net metering works in a nutshell:
Solar Panel Production: During the day, your solar panels capture sunlight and convert it into electricity. This energy powers your home and, if you generate more than you use, the excess flows into the grid.
Bi-Directional Meter: A special bi-directional meter tracks the energy flowing both ways. It measures how much power your solar system uses from the grid and how much you send back. This is important because it ensures you only pay for the net amount of energy you consume. You get credit for the surplus when you use less power than your system generates.
Credits on Your Bill: The energy credits you earn from sending surplus electricity to the grid reduce your monthly electricity bills. These credits typically roll over month-to-month, so if you produce more power than you use in one month, your bill can be lowered even more in future months.
Time-of-Use: Some regions have time-of-use policies that reward you for sending power back to the grid during peak hours when demand is high. This can make your surplus energy even more valuable.
How Net Metering Helps You Save More Money
One of the key advantages of net metering is the direct financial savings it offers. Here’s how:
Lower Energy Bills: When your solar system generates more power than your home needs, you send the excess back to the grid, and in exchange, you get credits. These credits offset the amount of electricity you pull from the grid when your solar system isn’t producing energy, like during nighttime. Over time, this can significantly lower your monthly energy bills.
No Wasted Energy: Without net metering, any surplus energy your solar panels produce is essentially wasted. But with net metering, you make sure that every bit of energy generated has value—whether it’s powering your home or earning you credit from the utility company.
Long-Term Savings: Over the long term, net metering can lead to significant savings. Depending on your location and how much sunlight your panels receive, you could end up paying little to nothing for electricity, or even receiving a check from the utility company if your system produces more than you need throughout the year.
Supporting the Grid: When your solar system produces excess energy and sends it back to the grid, it helps provide additional power for the community, especially during peak demand times. In a way, you're acting as a mini power plant that helps stabilize the grid, ensuring there’s enough electricity to meet everyone’s needs.
How to Get Started with Net Metering
Research Your State’s Policies: Net metering rules vary by state, so it’s important to research your state’s specific laws and policies. Some states have favorable net metering policies, while others may limit how much energy you can sell back. Contact your utility company for more information.
Choose the Right Solar System: Work with a qualified solar contractor to design and install a system that’s appropriately sized for your energy needs. The size of your system will impact how much surplus energy you can generate and, ultimately how much you can save.
Contact Your Utility Provider: Be sure to contact your utility company before installation to ensure that they support net metering and to learn about the specific requirements for connecting your solar system to the grid.
Final Thoughts
If you already have a solar power system, consider checking if your state offers net metering or tax credits to help you maximize the benefits of your solar investment.
At KingAire, we’re not just about making a sale; we take pride in helping our customers get the most value from their purchase. If you have more questions about solar power or anything electrical, we’re here to help. Contact us today or give us a call now at (850) 565-9138.