The 5 Ws of Net Metering Explained
- What is net metering? Net metering, explained simply, is measuring the energy you add to and take from the grid. Those with solar panels use and store different amounts of energy every day. For example, on a rainy day, you will probably be using more energy than your solar panels are absorbing, especially if you are having a movie marathon. Thus you will be taking from the grid. But if you are at the beach all day and it’s sunny outside, your solar panels will put any unused energy back onto the grid. Then, monthly or annually, your total energy usage is netted against your total energy produced, and you are billed accordingly.
- Who does net metering affect? Net metering affects everyone that uses power. Renewable energy, such as solar energy, is a benefit to everyone on earth because it replaces non-renewable energy and reduces the use of fossil fuels. The more people use solar energy, the more resources we save. However, those who produce clean energy using solar panels and other clean energy harvesters benefit the most by taking pride in protecting the planet and profiting from a reduced energy bill.
- When does net metering begin to matter? Net metering begins to matter when you install solar panels and start collecting energy. Even if you continuously use more energy than your solar panels store, the energy you collect from your solar panels is netted against the energy you use and deducted from your bills.
- Where can you use net metering? As of 2021, 41 states, as well as Washington, D.C., Puerto Rico, U.S. Virgin Islands, and American Samoa, have established net metering policies. However, not every state allows solar panels and net metering. One of the most shocking examples is Florida. Although Florida is known as a sunny tropical state, the residents are not able to soak up the sun with solar panels. A couple of other states where net metering is not established are Virginia and South Carolina.
- Why is net metering important? Net metering is important for many reasons, the main ones being that you can switch to clean energy while cutting down on expenses. Who doesn’t love making money in their sleep? Consider solar panels as your next investment.
How Does Solar Power Reduce Electricity Bills?
Solar power reduces your electricity bill by minimizing the amount of electricity you are taking from the grid. You may even receive some credit for the next month if your solar panels collected more energy than you used. There are two significant ways your solar panels can impact your electricity bill.
- Taxes: Taxes are typically calculated off of your electricity usage. So the less electricity you take from the grid and use from your solar panels, the fewer taxes!
- Electricity Rate: It makes sense that your electricity bill is mainly based on how much electricity you used that month. Power providers tend to charge a rate per kilowatt-hour. So those with solar panels will only be charged for the hours the panels didn’t provide enough energy for.
Ready. Set. Start Saving!
Why wait to cut down your electricity bills? With net metering explained, you’re ready to begin your net meter and save with solar panels. Call Current Home for a free quote today!
