Do you wish to make money from the sunlight that hits your roof each day? Well, you’re in luck. You can make your dream come true through net metering! By selling solar power back to electric company, you can not only generate money but also reduce the energy bills significantly while making the earth greener!
Let’s shoot to the practicality of net metering, how it works, what benefits it gives to homeowners, and what you need to start.
Get A Free Solar QuoteUnderstanding Net Metering
Suppose a residential customer has a photovoltaic system installed on their roof, and they are generating more electricity than other homes without the PV system during daylight hours. You might ask yourself how this is possible. You can also achieve similar but better results through the net metering billing mechanism.
When the sun is not shining or if it’s one of those days when the clouds don’t seem to go away, net metering comes in to save the day! It allows homeowners to store excess energy in the electric grid, and later on, they can use these energy credits to fulfill their energy consumption requirements. In simple words, you are selling solar power back to the electric company when it isn’t required and getting it back if it is needed.
Working Model of Net Metering
Understanding how you can gain unimaginable benefits from solar power is important before finally making up your mind. Here’s how net metering works at your property:
Installation of Solar Panels – Laying the Base
To properly benefit from reduced energy bills and a greener environment, you must lay the foundation of solar panels on your property's rooftop or a large empty land space. Once installed, the solar panels will generate electricity through the conversion of sunlight, which then supplies power to your house.
Solar panels are preferred in areas with ample sunlight during the daytime, as the chips can store the energy for later use when the sun goes down.
Electricity Generation – Consumption Vs. Surplus
When the sun is out at its fullest, the solar panels will work at their optimal level. Sometimes, it may generate more energy than your requirement, but what should you do with this surplus energy? You need not worry because that’s when net metering steps in to save the day!
The surplus energy is sent to the electric grid, from where your meter runs backward and credits your account for generating excess power. You are essentially selling solar power back to an electric company instead of being of no use.
Electric Grid Energy Usage
On days or nights when your solar panels aren’t at their best and are not generating electricity upto your consumption requirement, you can draw power from the grid till the meter runs forward. This results in an adequate energy supply but debits your account for energy consumption.
Net Metering Bills
Now, you might think about how to pay back for the electric grid. The answer is simple: on monthly billing durations, the utility company will calculate the total amount of electricity you have consumed. There are two cases of net metering bills;
● If you consume more electricity than the production, you will be billed with the difference in the cost and asked to pay it, followed by a deadline.
● However, when your solar panels generate more energy than you consume, you will receive a credit for future bills or payments from the utility company (this depends on your local regulations and legalities).
Upside of Selling Solar Power Back to Electric Company
Enhanced Cost Savings
One of the most significant benefits for homeowners of selling solar power back to an electric company is the enhanced cost savings. When you generate your own electricity and send the excess amounts back to the electric grid, you reduce your energy bills and save the maximum costs!
Contributing to Environment
It is undeniable that solar power will make the earth go green, as it is a renewable form of energy source that reduces greenhouse gas emissions significantly. It also reduces reliance on fossil fuels and other non-renewable energy resources. By partnering with net metering and selling solar power back to the electric company, you contribute to a greener and more sustainable future!
Less Reliance on the Grid
Through energy production from solar panels, you become less reliant on the electric grid and more flexible to power outages. When you generate your own electricity, it gives you control over energy usage and protects you financially from rising energy costs.
Increased Property Value
Homeowners can increase their property’s value through installing solar panels and making it an attractive investment for potential buyers. Properties with solar panels tend to sell faster with higher rates as compared to the ones that don’t.
Financial Incentives
Along with net metering benefits, the government also provides financial incentives to homeowners with solar panels, such as federal tax credits, local incentives, and state rebates. By leveraging incentives and net metering, you can take advantage of the chance to reduce the cost of your solar energy system and optimize the return on investment!
Get A Free Solar QuoteHow to Get the Net Metering Process Started?
Get Solar Panels and Inverters: When you decide on selling solar power back to electric company, you will need a solar panel system and an inverter. This will convert the direct current electricity into alternating, providing energy supply to your home and the electric grid.
Contact the Utility Company for a Net Metering Agreement: Once you have installed the panels and the inverter, you should contact your utility company to find out if they offer net metering or have any specific requirements.
You will be asked to sign a net metering agreement that includes the terms and conditions for selling solar power back to the electric company or grid.
Obtain Permits and Inspection from Local Government: It is best if you obtain local government permits for solar panel installation. Additionally, have your solar energy system thoroughly inspected and approved to ensure that it meets safety protocols.
Install Energy Monitoring System: A monitoring system will help you track solar energy production and consumption in real-time, which leads to optimal energy usage and insurance that your system is performing efficiently.
To Conclude
Selling solar power back to electric company via net metering is not only a smart but also a sustainable way to reduce energy bills. If you wish to make the earth green and a safe place to live on the future, it is best to shift to solar panels and further enhance the benefits by saving up costs, getting government and local incentives, increasing property value, and not relying on the electric grid for energy supply. Invest in solar energy today and shape your future at its best!