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What is net metering?

Jul 17

Although the ways in which utilities pay for your rooftop solar energy will vary, there are some things you should know.

You may have come across a variety of new concepts regarding how utilities manage the electricity generated by solar panels. You may have heard of net metering, also known as NEM or net energy metering. This is a unique concept that applies to residential and commercial areas that generate their own electricity.

You can have enough electricity generated by solar panels to supply electricity to your home. Sometimes, it will even be more than you can store or use. You can then sell excess electricity to the utility company for distribution elsewhere on the power grid. This is called net metering.

What is net metering?

You can sell excess solar energy to your utility company in return for credits that offset your energy consumption. While you may be able to generate more solar power in sunny weather, it will not be enough to power your home if it rains or clouds. You can sell excess energy back to the utility grid to get the credit that you can use to pay for any electricity you use. The net energy you use is the amount that you sell less than what you actually use.

What types of net metering are available?

There are three types of net metering. Which one you choose will depend on where you live and what your utility provider is.

Net metering

Net metering, the most popular arrangement, involves selling surplus solar power to the utility operator in return for credits. These credits will offset any electricity that you might need from the grid. The retail rate is the price you pay for electricity. This credit can be tracked with only one meter, but your meter might need to change if you go solar.


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