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The Cost-Saving Benefits of Net Metering

By March 26, 2020 Uncategorized
How does net metering work

Solar energy greatly contributes to environmental sustainability and fighting climate change. As a free renewable alternative to fossil fuels, the sun works to reduce energy consumption and create cleaner sources of energy. In fact, solar energy companies are quickly realizing the effectiveness of this resource.

When it comes to solar energy, the process of net metering is important to understand. Net energy metering (NEM) offers a balance between energy usage and the utility grid. It essentially acts as a scale between energy production and consumption.

How Does Net Metering Work?

NEM is a simple process: it takes any excess solar energy that was not used and stores it in a utility grid in exchange for credits. These credits offset energy costs when solar energy is not in use, like at night.

The amount of electricity produced varies each year. NEM accounts for these differences by crediting the excess electricity that your panels produced so it can be used later. This means that any surplus energy can be saved and used at another time.

An Energy Balancing Act

NEM works to balance your electricity use, but we first need to understand when electricity is being used and produced. Solar energy companies report that peak electricity production occurs in the afternoon, while peak electricity consumption is higher in the mornings and evenings.

However, when your system is not producing enough electricity, you can draw it from your utility grid. Because NEM runs in reverse, the opposite is true: excess electricity goes to your grid when producing more than you need. With net metering, the surplus electricity you produce covers the times when you don’t produce enough and works well to offset costs.

Saving on Energy Costs

There are plenty of cost-saving benefits of net metering offered by solar energy companies. Because of NEM, you are credited for the energy that solar panels generate at the same rate you would pay to your utility. This means that your costs are evening out.

NEM also comes with some state requirements. For example, some states have mandatory net metering policies and alternative policies that can help with costs. Rhode Island has both mandatory and alternative policies, while Florida only has mandatory NEM policies.

As mentioned earlier, credits are an effective way to save money. When you produce less electricity, you receive credits to buy electricity from the utility company. This ultimately makes up the difference.

Relying on Solar Energy Companies

For over 20 years, the professionals at PES Solar have satisfied homeowners with quality solar panel systems. With an A+ rating from the Better Business Bureau, PES Solar offers zero-down financing pending credit approval to further assist homeowners in going solar. To receive a solar panel system that produces the energy and savings you need, contact PES Solar today at 386-668-4222.