Understanding Net Metering for Solar Energy
The concept of net metering is important to understand if you are considering adding solar panels to your home or business, and it is one of the many benefits of going solar. For a better understanding of how alternative energy and PV solar can benefit you, check out the facts about net metering.
An Explanation of Net Metering
This process makes it possible for municipal or private electric utility companies to properly credit customers for any energy their PV solar power system may generate. When your home converts the sun’s rays to electricity but doesn’t use it all, the meter runs backward, and you are given a credit on your bill. You will see this credit on your bill as kilowatt hours, and that amount of power will be automatically banked toward your next energy bill. In this way, not only are you drawing less energy from the electric company, but you are also saving money on any electricity you do have to buy. And because most homes create more energy than they use during the day, especially on a sunny day, most people benefit significantly from net metering.
How the Meter Works
You are compensated whenever your house generates extra power because the excess energy is sent to the power grid, providing other homes with energy. This happens with the help of an electrical converter that turns direct current, or DC, from your solar panels into alternating current, or AC. If you want to save even more money than you already do with your solar panels, you can install a time-of-use meter. This keeps track of when you use power, charging more for the electricity used in the daytime than at night. Since panels produce all of their energy during the day, you should only have to pay the reduced fee for the energy you use at night, making the time-of-use plan a good choice for many customers.
Excess Energy Generation
If you live in a particularly sunny state, like Nevada, your house might actually generate more energy than you need every month. When this happens, you can expect to receive a credit on your bill most months. If the amount of your credit is higher than your bill, it typically rolls over to the next month. If you still have some credit remaining after a year or more, your utility company might pay you for the excess energy you generated. This is yet another reason installing solar panels makes sense.
If you have any questions about net metering or are ready to install solar panels on your home in Nevada, Utah or other states in the Intermountain Region, contact Intermountain Wind and Solar today. Generating free power is great for your bottom line, but getting money back is even better. If you’re tired of being obligated to your local electrical utility, contact Intermountain today to learn more about net metering.