Many people deciding to go solar have heard the name “Net Metering” but are not sure what it means.
What is Net Metering?
It is a utility billing mechanism available in a no. of states that offer a credit to both commercial and residential customers who are generating extra electricity with their solar panels and sending it back to the grid.
How does Net Metering Work?
A rooftop solar panel can generate more electricity than you use during the daytime.
With the help of Net Metering, consumers are only billed for the “net” energy utilized each month, i.e. the difference between the energy produced and the energy consumed by the house in the billing period of one month.
When your space is net-metered, the meter will be seen running backward, which means you may get a credit against the electricity you use from the grid when it is not sunny, or it is nighttime.
The Advantages of Net Metering:
Net Metering can help consumers save a huge chunk of money on their utility bills every year. Another benefit is, since your solar system is producing electric power near the point where it will be consuming, this helps to reduce the load on the power grid’s distribution and transmission infrastructure and minimizes the energy loss.
There are two types of power grids-
- On-Grid
- Off-Grid