Net Metering

Net Metering is a unique method by which small solar energy producers (like your home solar panels) can make the most of any surplus power that they produce through solar panel systems by selling it to the utility company.

This is profitable not only for the solar panel system owner as well as for the utility company as they can use this extra energy to fill the community’s energy requirements. This is the best way to get maximum return on your investment on a solar system for your home or small business.

The process is simple and when your solar panel system produces more power than you use it is transferred to the grid of the utility company who can then use it to meet the energy needs of other residential and commercial alternative energy users.

How Does Net Metering Work?


Net metering is not a new concept but it has gained popularity in last few years. Solar power is a great renewable energy source and can be the answer to lowering your energy bill.

Many people are already using it to fill their energy needs but the initial cost of installing a solar panel system can be high. You can use net metering to maximize your return on investment into a solar power system.

To make use of net metering, you would need to sign an agreement with the utility company so that your meter is connected to their grid for this process to work efficiently.

Solar power is generated during the day and if your usage is less than the energy that is being produced from your solar system your meter works backwards to store the surplus energy. The meter spins forward during the night and you can use all this surplus energy during the night when solar power isn’t being be produced.

When the billing cycle ends if your solar power system has produced more energy than you have used you can sell that surplus power to the utility company and earn a profit.

Things to Know Before Using Net Metering

You should know a few things before using net metering to ensure you get the maximum benefit from it.

1) You should carefully read the net metering policies of the utility company you are signing an agreement with. Some utility companies pay money while others will give you credit on your energy bill so you should be aware of what the utility company offers in exchange for surplus power that you provide them.

2) You should make a conscious effort to save energy. This will ensure you make the most out of net metering each month and maximize income on your installation investment.

3) You should not be charged more by the utility company just because you are using a conventional source for your energy needs. If you use more energy than that produced from your solar system you should pay the same as other customers who use the utility company.

4) Be sure you review your State and county’s rules on net metering. The rules can be different even by county.