Using Home Solar Power to Save Money

What is Net Metering?

Net metering is a billing mechanism that credits solar energy system owners for the electricity they add to the grid. For example, if a residential customer has a solar PV system on their home's rooftop, it may generate more electricity than the home uses during daylight hours. If the home is net-metered, the electricity meter will run backwards to provide a credit against what electricity is consumed at night or other periods where the home's electricity use exceeds the system's output. Customers are only billed for their "net" energy use.

The Mechanics of Net Metering

Here’s how it typically works:

1. Solar Installation: A homeowner installs solar panels on their property.
2. Electricity Generation: These panels generate electricity that can be used to power the home.
3. Surplus Energy: If the panels produce more electricity than the home needs, the excess is sent back to the public grid.
4. Compensation: The power meter tracks this contribution and the homeowner receives credit or payment for the excess energy provided.

Benefits of Net Metering

• Cost Savings: Reduces the electricity bills significantly, sometimes down to zero.
• Increased Property Value: Homes with solar energy systems have higher property values and sell more quickly than non-solar homes.
• Environmental Impact: Decreases the reliance on fossil fuels, reducing carbon footprint.

State Policies and Eligibility

Net metering policies vary by state and by utility company. As of 2023, 38 states plus Washington D.C. have mandatory net metering rules, while others have voluntary policies enacted by utilities (DSIRE). It’s important for homeowners to check the specific regulations and availability in their area by contacting their local utility company or visiting the Database of State Incentives for Renewables & Efficiency website.

How to Get Started with Net Metering

To find out if you are eligible for net metering, follow these steps:

1. Contact Your Utility Company: They can provide details on their net metering program.
2. Assess Your Home’s Solar Potential: Some homes may be better suited for solar panels due to their location, roof orientation, and unobstructed exposure to sunlight.
3. Consult a Solar Installer: Professional installers can provide a quote and feasibility study, helping you understand the potential costs and benefits.

Economic and Environmental Impact of Solar Power

The adoption of solar power and net metering can have profound economic and environmental benefits. According to the Solar Energy Industries Association (SEIA), the U.S. reached 97.7 gigawatts (GW) of cumulative installed solar electric capacity in 2021, enough to power 18 million average American homes. This growth in solar capacity has significantly contributed to job creation, with over 250,000 Americans employed in solar jobs as of 2021 (SEIA).

Conclusion

Net metering is a beneficial system that not only supports the environment by reducing the demand for fossil fuels but also offers substantial financial benefits for homeowners. By understanding and utilizing this system, homeowners can play a pivotal role in the energy transition towards a more sustainable and renewable energy-powered future.