How Does Net Metering Work?

Are you considering investing in solar power for your home? If so, you’ve no doubt heard of the term “Net Metering”. But what exactly is it and how does it work? Let’s break down what net metering is and how it operates.

What is Net Metering?

In a nutshell, net metering is a billing mechanism that credits residential solar system owners for the electricity they add to the grid. This allows homeowners with solar panels to be compensated for any excess energy generated by their system that flows back into the grid. When the sun is shining and your panels are producing more electricity than you need, you can get money back from your utility company.

How Does it Work?

When you install a photovoltaic (PV) solar panel system on your home, two-way meters are installed at each end of the meter—your home’s main service panel and your utility company’s transformer. During daylight hours when there is ample sunlight hitting your solar panels, they will produce more electricity than you need. That excess energy will flow back into the grid via those two-way meters, and your utility company will give you credit for producing that extra energy in the form of money off of your electric bill or even a check sent directly to you!

Benefits of Net Metering

The primary benefit of Net Metering is obvious—you get compensated for producing extra energy. But there are other benefits as well. For example, net metering helps reduce peak demand from traditional power plants since users are incentivized to use their own renewable sources of power instead of relying solely on traditional sources like fossil fuels or nuclear energy. Additionally, Net Metering ensures that no energy goes unused; if there’s excess energy produced, it can always be put back into the grid where someone else can use it instead of being wasted. Finally, having an alternative source of energy helps create a more resilient and secure electrical network in case there are any disruptions or outages due to extreme weather conditions or other unforeseen circumstances.

Net metering offers homeowners with solar panels an important financial incentive by providing them with credit for any extra electricity they generate throughout the day. It also helps reduce peak demand from traditional power plants while creating a more resilient electrical network overall. If you’re considering investing in solar power for your home, make sure to look into whether net metering is available in your area as it could help you save money while helping protect our environment!

If you’re unsure whether or not your utility company offers net metering, feel free to reach out to us and we’ll find out for you! Contact Us