Your new solar panel system comes with a practical new program they call solar net metering. It’s a marvelous way to ensure constant power.
Net metering influences how long it takes your solar installation to pay for itself. It also affects how your contractor designs it.
Want to know all about net energy metering (NEM)? Read on to learn about the program and how it works in this article.
What Is Solar Net Metering?
Solar net metering is an electric billing tool. It credits solar system owners for what they add to the electric grid.
For instance, a resident’s PV creates more electricity than the home’s daytime consumption. If it’s net-metered, the meter will run backward.
It provides a credit against the electricity used at night. It also applies when the home’s electric consumption beats the system’s output.
Customers only pay for the energy they use “net.” Only 20-40% of a solar energy system’s output makes it into the grid. Plus, this solar electricity powers local customers’ loads.
Taking Charge of Electricity Bills
Along with the advantages of solar, net metering benefits utility users and customers. It allows them a clean and efficient generation of electricity. Thus, it gives users control over their electric bills.
Most customers produce more electricity than they need during the daytime. The program allows them to give the excess energy, lowering electric costs.
Job Opportunities And Private Investments
Net metering brings significant economic benefits. It raises the demand for solar energy. With this progress comes more jobs for installers, electricians, and manufacturers in the solar supply chain.
Today, the solar business employs over 230,000 people in America. Thanks to robust state net metering rules that have allowed the industry to expand.
Protecting the Grid
Some utilities see net metering policies as a way to avoid losing money. It levels out the demand curve for electricity. Also, it allows utilities better control over peak demands.
Net metering lessens the load on distribution networks. It prevents losses in long-distance power transmission. It also reduces distribution by encouraging generation near the point of use.
A wide range of studies proves the value solar brings to the electrical system. Not only that, it benefits local economies.
Where Is It Available?
Net metering legislation exists in a lot of states. In some states, utilities can offer net metering programs. They’re also the results of regulatory decisions.
They mandate net metering in 38 states and Washington D.C. Out of all 50 states, 29 need full-retail net metering. The other 17 offer some alternative net metering programs or tariffs.
Also, some companies in Idaho and Texas offer net metering to their solar customers. Albeit, they are not mandated to do so.
The mechanism for compensating solar customers varies across the country. Hence, it’s due to differences in state legislation, regulatory decisions, and implementation policies.
Now You Know All About Solar Net Metering
We hope you learned all there is to know about solar net metering. Don’t run the risk of your utility cutting the program. Go solar now, and get the best savings through net metering!
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