Many people are investing in solar systems to cut their monthly electricity bills. The numerous incentives provided by states and the federal government aid in making investing in an innovative system more accessible. Solar incentives are only one of many ways consumers can save through the help of solar photovoltaic (PV) systems.
Net Metering within North Carolina allows owners of residential and commerce system owners systems to offset their monthly electricity costs by sending surplus power back to the grid. They can add credits to their electric bills to pay for their energy use in the months when their solar systems do not generate as much electricity. Find out more about net metering and how 8MSolar could help you get the most benefit from the service within your region.
WHAT IS NET METERING?
Net energy meters, often called net meters, are a service local utility companies provide that allows renewable energy consumers to sell surplus energy to these companies to use in the power grid in their local area. Residential and commercial clients are eligible for this service, where they exchange the excess energy they generate for credits they can use on their monthly energy bills to reduce costs. Instead of paying for energy consumption fully, solar customers are liable for the amount that is the difference in energy consumed and the power they return in exchange for utility companies.
HOW DOES NET METERING WORK?
Initially, you need to buy an installation and solar PV system. Then, connect it to the utility’s electric distribution system so that you can benefit from net meters. Once you’ve got your system in place, your utility provider in your area will offer the bi-directional meter for determining the amount of power that flows into and out of the system.
The solar panel will produce electricity. Then, it will consume it for your own needs. If your system has more energy than you’ll need, it will be redirected through the net meter to the utility company’s grid. The amount you’ll save on your electric bill will depend on the type of schedule you’re in:
Standard Schedule Rate: The rate is similar to fixed rates, meaning you pay a fixed price for your electric power. For instance, you could spend 15 cents for a kilowatt-hour (c/Kwh), which doesn’t change irrespective of the time you use your ability. The extra energy generated by your system is redirected to the grid, which lowers the meter’s net reading and results in lower monthly utility bills.
Time-of-use rates: This kind of schedule comes with various rates for different times of the day. For instance, peak hours, weekends, and holidays can be charged at a higher or lower rate according to your utility provider’s conditions. The extra energy you generate during certain times will lower your monthly bills at specific speeds. For instance, if you generate more electricity during peak times, the electric company will reduce your account to the rate of peak hours.
If you use more energy than you use, the utility provider will give you an amount of credit and include the credit on your bill, which you can then use to pay for future invoices. Some companies, however, have specific requirements for the credit. For instance, your employer might require you to utilize credits within 12 months. Net metering could assist you in saving money on your monthly energy bills, even if it does not eliminate them in certain months. You can use your credits to offset the costs in your favor if your solar system isn’t producing the same amount of energy.
BENEFITS OF NET METERING FOR PV SYSTEM OWNERS
Net metering offers numerous benefits for commercial and residential clients when purchasing solar systems. Businesses and individuals are more likely to use solar power if they can reduce the monthly electricity cost. If more people choose to switch to renewable energy sources, they reap benefits for their communities and to them through the ways listed below:
Boosted Economy
Net metering protects the local energy grid by dispersing surplus power to other businesses and residents. This additional electricity can help decrease energy losses as it is distributed over long distances and reduces general wear and tear on the grid.
As more people embrace solar power, there’s an increase in demand for jobs in the sector which directly boosts the economy with increased sales. Net metering also encourages entrepreneurs and individuals to invest in solar power and positively affects the global and local environment by cutting carbon emissions.
Financial Savings
Net metering permits you to save money on electric bills when the sun sets at dawn. Net metering is only one of many methods solar owners have to reduce their costs for installation. Local and federal governments offer incentives to reduce the expenses required to set up an array, and net meters provide ongoing monthly savings. The total solar system owner’s costs can be reduced or offset through credit that is applied to their subsequent electric bill if the solar panel cannot generate enough power as they would like.
In addition to the government’s incentives for net meters, individuals can profit from solar investment as quickly as four or nine years. The savings they make following that point through net metering will put more into investing in other ventures.
Self-Reliance
Many people choose to invest in solar power to decrease their dependence on the electrical grid and fossil fuels. A sound solar system can aid in increasing your self-reliance by supplying enough energy to power your home. The solar panel could produce enough energy to offer back to your electric company to reduce the monthly cost or credit you can utilize for the future.
Businesses and homeowners can boost their self-reliance by installing a backup battery to store excess electricity. Then, they can use the electricity stored in the solar system they have installed does not generate enough energy. Being self-sufficient using solar power will also lessen the requirement to use fossil fuels, which can help protect the environment.