What Is Net Metering and How Does It Work?

As solar energy adoption grows, many homeowners are discovering the benefits of using PV solar panels to power their homes. One such benefit is net metering, a billing system that helps you maximize the value of your solar energy system.

But what exactly is net metering, and how does it work? In this blog, we’ll explain net metering and how it works with your solar panel system.

What is Net Metering?

Net metering allows solar energy users to send excess power from their system back to the utility grid. When your solar panels generate more electricity than your home needs, the system credits your account. You can use this credit to offset electricity consumption from the grid when your solar system isn’t producing enough power.

In simple terms, net metering ensures you only pay for the “net” energy you use. This is the difference between the energy you pull from the grid and the excess energy your solar panels generate. This system allows you to make the most of your solar installation and helps lower your overall energy bills.

How Does Net Metering Work?

When you install a solar panel system, the system connects to the electric grid through a two-way meter. During the day, your solar panels generate electricity. If your system produces more electricity than your home needs, the excess power flows back into the grid. The electric meter runs backward, crediting you for that energy.

When your solar panels aren’t generating enough electricity to meet your needs, your home pulls electricity from the grid. When this happens, the meter runs forward, as you’re consuming energy from the grid.

Throughout the billing cycle, the utility company tracks the energy you’ve sent to and consumed from the grid. At the end of the cycle, the utility company bills you for the “net” amount, which is the difference between what you’ve used and sent back. If you’ve sent more power than you’ve used, you may receive a credit.

This process ensures that you only pay for net energy usage, helping you save money and maximize your solar power system’s efficiency.

Conclusion

In short, net metering helps you save money by ensuring you only pay for the energy you actually use. It allows you to send excess energy back to the grid, earning credits that offset the cost of electricity you consume. This makes your solar system more efficient and cost-effective.

Ready to start saving with solar energy? Contact Pinnacle Exteriors at (484) 350-6829 to learn more about how net metering can benefit you!