What is Net Energy Metering?
Net energy metering is a billing arrangement that allows solar panel owners to receive credit for the excess electricity they generate. When a solar panel system produces more electricity than is needed, the excess is sent back to the grid and accumulated as credits. These credits can be used to offset future electricity costs when the solar system is not generating enough power, such as during nighttime or cloudy days. Net energy metering enables solar panel owners to benefit financially by reducing their overall energy costs.
How Does Net Energy Metering Work?
Net energy metering works by using a bi-directional meter that measures both the electricity consumed from the grid and the excess electricity sent back to the grid from the solar panel system. When the solar panels generate more electricity than is being consumed, the excess electricity flows into the grid, causing the meter to spin backward. This backward movement of the meter represents the credits earned by the solar panel owner.
During times when the solar system is not generating enough electricity, such as at night, the solar panel owner can use the accumulated credits to offset the electricity consumed from the grid. The meter then spins forward, indicating the electricity being consumed from the grid. At the end of the billing cycle, the solar panel owner is billed for the net amount of electricity consumed, which is the total electricity consumed from the grid minus the credits earned.
Benefits of Net Energy Metering
Net energy metering offers several benefits to solar panel owners:
- Reduced Electricity Costs: By receiving credits for excess electricity generated, solar panel owners can offset their electricity costs, resulting in lower energy bills.
- Financial Incentives: Net energy metering provides financial incentives for investing in solar panels by allowing owners to earn credits for the excess electricity they produce.
- Environmental Benefits: Solar energy is a clean and renewable source of energy. By installing solar panels and participating in net energy metering, individuals can reduce their carbon footprint and contribute to a more sustainable future.
- Energy Independence: Net energy metering allows solar panel owners to become more self-sufficient by generating their own electricity and reducing their dependence on the grid.
Net Energy Metering Policies
The specific policies and regulations regarding net energy metering vary from state to state and utility company to utility company. Some states have specific caps or limits on the size of solar panel systems eligible for net energy metering, while others have no size restrictions. Additionally, the credit rate for excess electricity may also vary.
In some cases, if the accumulated credits exceed a certain limit, they may expire or have a reduced value. This is known as the “rollover” or “true-up” period. It is essential to understand the net energy metering policies of your state and utility company to make informed decisions about solar panel installation and energy consumption.
Conclusion
Net energy metering is a billing arrangement that allows solar panel owners to receive credit for the excess electricity they generate. It provides financial incentives, reduces electricity costs, and promotes environmental sustainability. Understanding the net energy metering policies in your area is essential for maximizing the benefits of solar panel installation. Nevada Solar Group specializes in solar panel installation and offers a wide range of services related to solar energy. Contact us today at 702-899-5577 or visit our website to learn more about our services and how we can help you harness the power of solar energy.