Understanding Net Metering: What It Is and How It Works?

It should be a no-brainer by now among the entire lot of homeowners across the US that the utility and benefits of solar energy are undeniable. The abundance of energy, the long term financial benefits and the environmental friendliness are just a few of the benefits that can completely alter our lifestyles and the face of the land that we live on. The upsurge of Solar Energy in California is one of the prime examples of success as a large number of homeowners from that area have opted for solar, which has brought about significant reforms in their economy as well as their climate as of late.

The government has become cognizant of the aforementioned facts and is now offering a plethora of incentives to the people who wish to go solar in majority of the states. One of the most common and beneficial incentives of the bunch, is net metering. Let us have a look at what the net metering is and how it works:

What is Net Metering

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For those who are unfamiliar with the term, net metering is an incentive whereby the excess solar energy is stored within the system and then sent back to the grid, in exchange for which, the government provides credit to the homeowners whose system solar generates surplus electricity. Thereby, in case the solar energy system is not producing the desired amount of energy, the home can be fed electricity from the grid.

In order to produce the exact amount of electricity that is being used in a home throughout the year, one must analyze the amount of energy being consumed and get a system that would likely to produce the same amount of energy for the majority of the year. In the areas with a variety of seasons coming and going each year, the amount of electricity produced throughout the year is also likely to fluctuate. With net metering, the homeowners can also account for the recurrent changes through the change in the credits received each year and make use of electricity accordingly to get the best results. Usually the optimal time to enjoy the benefits of net metering is usually the summer season. In winter though, since the days are not as long the intensity of the sunlight is not as high, the electricity can be acquired from the grid.

Net metering is gradually becoming a very popular means of earning among the solar customers since it is a heavily endorsed practice on the government’s part. The incentive is being offered in more than 40 states and the authorized dealers can be contacted to avail convenient payment plans to opt for solar energy.

How Net Metering Works

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Incase solar energy system produces a surplus amount of electricity, the excess amount is sent over to the utility grid station. However, if the energy produced isn’t sufficient enough to take a home through the day, the electricity can be acquired from the grid, as discussed above. That is where the beauty of net metering lies as, during the time, which is typically winter, when you’re not producing a sufficient amount of electricity, you can still use the electricity from the grid. In the summer, you shall receive credits based off of the surplus number of kilowatt-hours. In case of insufficient power generation, you would have to buy the electricity from back from the grid, which would offset your credits.

However, if we were to look at the bigger picture, this to-and-fro between the utility and the solar customer is likely to reduce the yearly expenditure by a significant margin by minimizing the year round utility expenses. To enjoy such financial benefits along with giving back to the environment by preserving it with clean energy, it would be a wise decision to make a smart choice and opt for the best solar energy system in the market.