Solar Net Metering

Credits at a wholesale rather than retail rate.

Solar net metering. This is the standard electricity bill with solar net metering. Net metering updates may factor in such things as a more accurate valuation of the solar energy flowing into the distribution grid. Sample of electricity bill with solar net metering. In other words when your solar panels produce more electricity than your home needs that excess power will be sent to the power grid.

Under a feed in tariff the utility installs two meters. One for the power you use one for the power you generate. Net metering increases demand for solar energy which in turn creates jobs for the installers electricians and manufacturers who work in the solar supply chain. Net metering began in the united states over 40 years ago as a way to compensate small scale wind and solar owners who wanted to use the electricity generated by their systems at different times.

If you install an energy storage system to take your home off the grid you won t have access to the benefits of net metering. Net metering is a solar incentive that requires your utility to purchase excess solar electricity that your solar panels produce at the full retail value of electricity. Net metering or net energy metering nem is an electricity billing mechanism that allows consumers who generate some or all of their own electricity to use that electricity anytime instead of when it is generated this is particularly important with renewable energy sources like wind and solar which are non dispatchable when not coupled to storage. So rebates and method of calculation for solar net metering bill may differ as per your state.

Today the solar industry employs more than 250 000 american workers in large part due to strong state net metering policies which have allowed the solar industry to thrive. Because in every state there are different type of electricity departments or power distribution companies. Net metering is applicable to a wide range of renewable technologies but most net metering programs are tied to solar photovoltaic systems because it s easier to size a. Most net metering agreements use one meter to track net energy consumption energy used minus energy generated from solar and bill everything at a uniform rate.

In essence net metering is like having the grid serve as a giant solar battery. Rate structures that charge more for electricity at certain times of the day or night or look at where on the grid the excess electricity is being generated.