Solar 101: Net Metering - Selling excess solar energy back to your utility company

Welcome To Solar 101  

Welcome to our Solar 101 Series, where we answer the question: "I've heard a lot about solar, but where do I start?". Dive in with us as we help you navigate a clean and surprisingly affordable energy choice that's becoming more accessible to every home and business nationwide.   

How Does Net Metering Work?

As more and more people turn to renewable energy sources, understanding the ins and outs of solar energy becomes increasingly important. One key aspect of solar energy systems is net metering—a mechanism that plays a significant role in the financial viability and overall success of residential solar installations.  

In this article, we will delve into the concept of net metering, its benefits, and how it encourages the adoption of renewable energy sources. We'll also explore the different policies and regulations surrounding net metering and discuss alternatives available in your area. Note: Net metering may not be available in your area so you should check with your power company. By the end of this article, you'll have a solid understanding of how net metering works and how it can contribute to a greener, more sustainable future. 

A Definition for Net Metering 

Net metering is a billing arrangement between the owner of a solar system and their utility company. It allows homeowners or businesses with solar panels to receive credits for the excess electricity they generate and send back to the grid. This process allows solar energy users to "store" their surplus energy in the grid and use it later, turning it into a "bank" for solar-generated electricity. 

How It Works in Practice 

When your solar panels generate more electricity than your home or business uses, it sends the excess power back to the electrical grid. The bi-directional meter measures the electricity you consume from the grid and the amount you feed into it. Your utility company will then credit you for the excess electricity at a predetermined rate.  

At the end of the billing period, you'll receive a credit on your bill if you've generated more electricity than you used. However, if you've used more electricity than your solar panels produced, you'll only be billed for the net difference between the energy you consumed and the energy you generated. 

The Role of Bi-Directional Meters 

A critical part of net metering is the bi-directional meter, sometimes referred toas a net meter. This device measures the energy flow in both directions—into your home from the grid and your solar panels back to the grid. By keeping track of these two energy flows, the bi-directional meter enables the utility company to accurately calculate your net energy usage and apply credits to your account accordingly. 

What Are the Benefits of Net Metering? 

Financial Benefits for Homeowners 

One of the main benefits of net metering is the financial savings it offers homeowners and business owners with a solar system. Owners can reduce their monthly utility bills by receiving credits for excess electricity sent back to the grid. Additionally, net metering ensures homeowners get the most value out of their solar energy systems by allowing them to "store" excess energy, as a credit, in the grid and use it later rather than letting it go to waste. 

Encouraging Renewable Energy Adoption 

Net metering plays a significant role in promoting the adoption of solar energy by making it a more attractive and financially practical choice for homeowners. By offering financial incentives and reducing the payback period for solar installations, net metering helps make solar energy more competitive with traditional energy sources. This process, in turn, encourages more people to invest in solar panels and contributes to the growth of the renewable energy sector. 

Reducing The Strain on the Electrical Grid 

Net metering also helps the electrical grid and the environment. The solar panel system sends back excess generated electricity to the grid, reducing the demand for power from traditional, non-renewable sources. Overall, this helps ease the strain on the grid during peak usage times and reduces the need for added power plants. Also, by promoting the use of clean, renewableenergy, net metering helps reduce greenhouse gas emissions and contributes to a more sustainable future. 

[Image of a utility worker around something utility related, like a plant] 

Policies And Regulations Around Net Metering 

Variations In Net Metering Policies 

Net metering policies vary across states, counties, and utilities, with each jurisdiction having its rules and regulations. Some states have favorable net metering policies, offering full retail credit for excess electricity sent back to the grid. Others may have less generous policies, with credits provided at a lower rate than the retail price or with certain limitations, such as caps on system size or total program enrollment. 

Understanding Your Local Net Metering Policy 

To fully understand and take advantage of net metering, you need to familiarize yourself with your local policy. First, research your state or county's net metering regulations to determine the credit rate you'll receive and any applicable restrictions or limitations. Your utility company, or the company you're working with to set up and install your solar panels, should also be able to supply information on your local net metering policy. 

As the solar energy market continues to evolve, some states and counties have changed their net metering policies, often to the detriment of homeowners and businesses. Alternative billing arrangements, such as solar and feed-in tariffs, have appeared in response. These alternatives aim to strike a balance between compensating solar energy users for their excess generation and addressing concerns from utility companies about revenue loss and grid maintenance costs. Staying informed about changes in your area's net metering policies is critical. At GreenMarbles, we feel this information is vital. That is why we focus on providing continuing education with every one of our solar programs, keeping you apprised every step of the way. 

Note: Do some research for your state. Talk to your energy company and local officials. This Wikipedia Article provides a high level overview of what each state offers. 

How It All Comes Together 

Solar panels offer a clean, sustainable, and efficient way to generate electricity from the sun's energy, helping you reduce your reliance on fossil fuels and lower your utility bills. By understanding how solar panels work and considering the various factors that affect their performance, you can make informed decisions about installing, maintaining, and monitoring your solar energy system. 

Upgrading or expanding your solar panel system as needed can improve its efficiency and align it with your evolving energy needs. With proper care and monitoring, your solar panels can provide you with years of renewable energy and contribute to a greener, more sustainable future. 

If you're interested in exploring solar energy further or want to discuss solar panel installation for your home, don't hesitate to contact us with questions. 

Are you a utility looking to offer a better solar experience for your customers? Check out our Solar Navigator Program.