All You Need to Know about Net-metering

Net-metering is also referred to as net energy metering or NEM. It is an incentive program that exists, allowing you to supply excess solar energy to the electricity grid. You can receive credits when your system generates surplus energy. During the night or when solar energy production is low, you can draw power from the grid to run your home. These credits cover that cost.

When you have the right size of solar energy system, you can have enough power for powering your home all year round. Net-metering allows you to account for the variables when solar energy production reduces. In this article, we are going to discuss how net-metering works.

Net Metering: Everything You Should Know

Net-metering system

Various factors affect solar power production. Issues such as cloudy days and other weather conditions can hinder the efficiency of the solar panels. Not to mention, there is no solar energy production at night. Nevertheless, energy demands in homes do not change in such cases. If anything, the consumption is higher as the home may require more energy for heating. For this reason, connecting your solar power to the grid is a wise decision.

How Does Net-Metering Work?

Typically, solar panels attain maximum electricity production in the afternoons. Most people are usually at work in most cases, and the home’s electricity consumption is low. Energy is mostly utilized in homes in the morning and evenings.  Net-metering comes in to solve this contrast.

Generally, when your solar is connected to the grid, the energy produced during the peak hours is fed into the electric utility grid. As this happens, your meter runs in reverse. When solar production stops or reduces, you access power from the grid the same you did before switching to solar.

The back and forth between the grid and your solar system assures that you will benefit from generating excess energy. At the same time, you get a cover for any shortages in production.

In cases where the solar system generates more electricity than your home used at the end of the month, you receive a credit. The credit is based on the kilowatt-hours used net numbers that you gave back to the grid. When you consume more that you gave back to the grid, you need to pay for the energy. In such cases, you minus the system’s excess power generation from the amount of electricity used and pay the difference.

Availability of Net-metering

Net-metering is one of the most successful incentives for going solar. Most regions have mandatory net-metering rules. Other states may not have this option; however, they have approved the arrangement but included variations where they have Value of Solar (VOS) schemes. The only difference with VOS schemes is that the rate is the same for the next 20 years.

Benefits of Net-Metering

Net-metering is a helpful incentive in getting homes to adopt clean energy use. Consumers can track their energy consumption, which reduces waste. Other benefits include:

1. Removes the Need for Solar Storage

To achieve maximum benefits from going solar, you require an energy storage system. The storage caters for continuous demand. The energy backup systems are expensive and impact the payback period of the investment. For an effective system that powers your home, you will need a robust solar storage design. Such extra costs can hinder one from switching to solar energy. Under net metering, the electricity grid becomes your storage.

2. Earning Credits

With net-metering, you will earn credits from the excess energy your system produces. The credits allow you to trade off your electricity at a retail rate. The exchange reduces the amount of money you pay for electricity or eradicates it. In some cases, the trade-off price can include the cost of transmission and distribution.

3. Removes Pressure from the Grid

For every kWh produced and used in homes, it reduces the need for transportation and distribution. As a result, there are fewer maintenance costs as well as the need for constructing new facilities. As a consumer, you also participate in energy production as you help protect the environment.

Requirements for Grid Connection

The requirements for connecting to the grid vary widely from one state to the other. However, the most common problem when connecting to the grid is safety concerns. You’ll need to contact your electric utility company to find out their requirement and meter rates.

Electricity providers need to ensure that the system meets the required power and quality measures. Also, as you connect to the grid, you may need to sign an agreement. In it, you can bear the insurance liability. The liability insurance is there to protect the power provider from any arising accidents and incidents.

You may also need to insure power providers from any potential damage, injury, or loss caused by your energy system. Unfortunately, these issues can be quite expensive. Additionally, you may have to pay other charges to connect to the grid. The fees cover permits, engineering, and inspection, as well as standby fees. You need to know these charges in advance to include them in your overall solar power costs. If anything is inappropriate, you can make inquiries.

If you have been thinking about switching to solar, net metering offers numerous benefits for you. This program uses a single bi-directional meter that records the electricity that you give to the grid and the one you draw from it. The meter spins forward when you draw from the grid and backward when your solar energy system supplies power to the grid.

The most notable advantage of such a system is the provision of storage for excess solar energy. Solar power storage adds to the solar installation costs. Additionally, it saves on the much-needed space for the batteries. Designing a solar system with storage can also complicate the design. When you connect to the grid, you benefit by using it to store your power.

Action Point

Dynamic SLR guides you through the installation of a grid-tied solar system so that you can benefit from net-metering. The program acts as a backup for your solar power when the generation is low. You can also receive credit if the net production in a month is higher than your grid consumption. Contact us today to install solar panels on your home or business.