What is Net Metering?
What is net metering?
Definition: Net metering is a utility billing mechanism that tracks the amount of energy a residential solar home is feeding back onto the grid versus how much energy the home is using overall. The solar energy production is tracked through a net meter and credited to the homeowner’s account.
Simply put – when your solar panels are producing energy on a sunny day, they are likely creating more energy than your home can consume at the time. That excess energy has to go somewhere, so it flows back out onto the utility grid. Your utility company will track – dollar for dollar – watt for watt – how much energy you are putting back onto their system. With Net Metering, the utility company will credit that extra energy to you and apply it to your energy usage in the evening when your home uses the most power.
There is absolutely no loss in money or energy in this exchange, that’s why they call it Net Metering.
If at the end of the month, you have a Net Meter credit, then it will roll over into the next month. The long days of summer usually create Net Meter credits that stay on your account until you use them up in the shorter days of winter. If at the end of the year, you still have a Net Meter credit, your utility will cash you out or roll the credits into the next year.
Every utility company is REQUIRED to allow Net Metering, have you considered making the switch to Solar?
Frequently Asked Questions
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- Solar Panels: Optimizers vs. Micro-Inverters
- Environmental Impact of a Single Solar Home
- What happens when your solar system gets hit by hail?
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- Do Solar Panels Produce on Cloudy Days
- Can HOAs prevent us from getting solar?
- What is Net Metering?
- How Do Solar Panels Perform During Winter?
- What Are the Financial Incentives When You Invest In Solar For Your Colorado Home?
- DIY Solar Panel Installation: Can I Install My Own Solar Panel?
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- How Do Solar Panels Work?
- How Do I Know if Solar Panels Work on My Denver Home?
- What Does the Solar Panel Installation Process Look Like?
- How Much Maintenance Do Solar Panels Require?
- How Does Solar Energy Help the Environment?
- How Many Residential Solar Panels Do You Need?
- What Happens to My Solar Energy Production When the Days Get Shorter?