What is Net Metering and How Does it Work?

As power outages, blackouts and rising energy bills continue to plague customers and businesses, going solar is still the most viable option to protect yourself and your home all year round. If you’re interested in going solar, you may be wondering what Net Metering is and how it may impact you. Here’s a breakdown:

What is Net Metering?

Simply put, net metering is a solar incentive available in most states that gives financial credits to residential customers (known as “customer-generators”) who produce excess electricity through their solar system and send it back to the grid. 

How Does Net Metering Work?

Rooftop solar systems often generate more electricity than you can consume during the day. With net metering, you only pay the difference between the energy your solar power system generates and the energy your home consumes during each monthly billing period. In other words, you’re only billed for the “net” energy your home or business uses each month.  

This is why we work closely with each of our customers to ensure the best solar system size for their home. With the right system, you can produce enough electricity to cover your home’s energy needs for the entire year. Most homes produce excess energy during the summer months because of the abundant sunshine but will use more energy from the grid during the winter months. Net metering helps offset the cost by giving you credit for the excess energy your panels produce (during the summer) so you can use it when you need it (during the winter).

The Benefits of Net Metering

Net metering credits homeowners for the energy their solar panels generate at the same rate that they would pay to their utility company. Because of this, you can save hundreds of dollars on your utility bills each year and tens of thousands of dollars on electricity costs over the lifetime of your system. 

If you have additional questions, please email info@sunpowerbysunsolar.com or call 1-800-SOLAR-POWER to connect with a Solar Educator. 

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