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Net Metering

Solar Panels
Solar Panels February 23, 2023
  • Net metering is a policy that allows individuals or businesses who generate their own electricity, usually through solar panels or small wind turbines, to feed excess power back into the grid and receive credits on their utility bills. This policy is designed to encourage the development of renewable energy and support the growth of distributed generation.
  • When a customer with a net metered system generates more electricity than they use, the excess is sent back to the grid and the utility company records it as a credit on the customer’s account. When the customer’s own generation is not sufficient to meet their needs, they can draw power from the grid and use the credits they have accumulated to offset the cost.
  • Net metering policies vary by state and utility company, but in general, the credits are applied on a dollar-for-dollar basis and any unused credits roll over to the next month. Some states also have a cap on the amount of electricity that can be credited back to the customer, known as the “net metering cap”.
  • Net metering has been a powerful tool in promoting renewable energy and encouraging customers to invest in solar panels and other forms of distributed generation. It allows customers to see the financial benefits of their investment in real-time and can help them save money on their utility bills. However, some utilities and regulators have raised concerns that net metering can shift the costs of maintaining the grid onto non-solar customers.
  • Overall, net metering is a policy that has helped to promote the growth of renewable energy and support the development of distributed generation. It is a way for customers to have control of their energy consumption, but also for utilities to have a more sustainable, cost-effective and environmentally friendly way of providing energy.
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