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What You Need to Know About Net Metering

net meteringIn today’s age of green initiatives encouraging at-home energy resources, there are many people taking advantage of generating their own electricity through solar power. With these types of self-produced energy, many residential customers are not using the city- and state-provided utilities network. In fact, the energy that they produce at their homes is often funneled back into the power grid where other local customers can use it. This phenomenon has led to the concept of net metering.

Defining Net Metering

Before the advent of net metering, the extra energy produced by solar-powered homes was simply unused, then lost. In order to take advantage of the excess energy produced by solar-powered homes, utility companies in charge of the grid began to credit those producers for adding home-generated energy for their own use and for the use of other customers. This billing and crediting system became known as net metering.

For example, a home with solar panels on the roof may be able to generate more energy during the daytime than the home needs to run electricity lines and appliances. If this solar-powered home is enrolled in net metering, its electricity meter will actually run backward during the hours it is over-producing, thereby creating energy credits. The homeowners can then use these credited hours either during the nighttime when solar energy is inapplicable, or for donation to the electric grid for other customers to use. With this system, energy-producing homeowners are only charged for the energy they consume from the outside grid, also known as their net use.... read more

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