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What Is Net Metering and How It Can Work for You

Not only is solar installation a great way to contribute renewable energy to the energy mix, but you can also earn passive income by offsetting your electricity bill.

The key component of reducing your monthly energy bill is through net metering.

What Is Net Metering?

Net metering is a mechanism where your power company measures the direction of electricity flow between your home and the electric grid.

When your home is using electricity from the grid, the meter calculates your energy consumption normally.

When your home is producing more electricity than consumed, the net metering system allows you to send the excess energy back to the grid in exchange for credits in your bill.

So you are only billed for the net energy you use each month, which is the difference between the energy produced from your solar system and the energy consumed by your home.

How Net Metering Can Work With Your Solar Installation

Since the solar panels on your roof only produce electricity when the sun is bright, the energy production from your installation is weather-dependent and inconsistent.

Add to the fact that power consumption in your household may not line up perfectly with the energy production of the solar installation, there is a constant give-and-take of electricity between your home and the electric grid.

When your home is consuming energy during the evening, the meter measures your energy usage from the grid.

When your home is producing more energy during the day, the net metering mechanism measures the electricity you provide to the grid in exchange for credits.

So the energy your solar system produces gets compensated by the power company and reflected in savings on your power bill every month.

By offsetting energy consumption each month, you are also protected from fluctuations in electricity prices in the future.

The higher the electricity prices, the more your solar energy produced is worth.

To take advantage of the savings from solar energy, contact us to add high-efficiency solar modules on your rooftop.

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