What Is Net Metering, and How Can It Save You Money on Your Electric Bill?

Have you recently installed solar panels and want to discover ways to save more money on your energy bill? You’d benefit from implementing solar net metering for your home or business. As the local solar experts, RxSun can teach you all about how net metering works and why it saves you significant money on your utility bills.

What Is Solar Net Metering and How Net Metering Works

Metering is when the utility company monitors how much energy you use and provides energy credits for any excess power produced. While you can find different forms and nuances, in its most basic form, for every kilowatt-hour of power you produce and don’t use, you’ll receive a credit for one kilowatt-hour of free power when the sun isn’t shining.

This relies on installing a bi-directional electricity meter, which records how much power you send to the electrical grid. Since it requires access to the utility company, you can’t use solar net metering if you don’t have a grid connection. With the right configuration, you can generate enough electricity to power your home for free.

Net Metering Benefits: How Solar Net Metering Saves You Money

What are the net metering benefits? 

· Cost savings: Even if you don’t completely supplement your power usage in your home or business, you’ll still save considerable money. Since you’re generating your own power and obtaining credits, you’ll pay for only a fraction of the electricity you use.

· Energy independence: Are you tired of electrical companies with frequent outages or increasing rates? When you achieve energy independence, you’re not beholden to the whims of utility companies.

· Expedite ROI: Solar panels cost a significant amount of money, and making your money back from your savings can take several years. When you incorporate net metering, you speed up the rate at which you’ve saved more than you spent.

· Improve your community: As an environmentally friendly option, solar panels care for and improve your community. When you add net metering, it reduces the overall burden on your community’s electrical grid, allowing others to have the power they need without risking damage to the grid.

The Impact of Net Metering on Your Electricity Bill

How much can solar net metering save you on your electricity bill? It depends on several factors, but consider the following information:

· According to the Energy Information Administration, the average household in the United States uses about 30,000 kilowatt-hours of electricity per day.

· The average home needs between 10 and 20 solar panels to offset its electricity usage. 

· Several conditions, such as clouds and shade, can reduce the productivity of your solar panels.

Not every home can produce enough power to offset their electricity completely, but with the right configuration and other tips, you may obtain completely free electricity. 

Net Metering Policies and Regulations

What policies and regulations affect a home or business’s ability to participate in net metering? Each state has its own laws governing the practice, and not every jurisdiction gives you a one-for-one value on the energy you produce. For example, if you live in Nevada, you’ll receive a credit for 75% of the value of every excess kilowatt-hour you produce.

In Illinois, the state government mandates energy companies offer you a one-to-one retail value for the excess power you produce. However, any credits you don’t use expire at the end of your annual contract.

Tips for Maximizing Savings With Solar Net Metering

How can you maximize your solar net metering savings?

Install the Right Size Solar Panels

Your home may have space restrictions, but ideally, you should install enough solar panels to over-produce the power you need. You don’t want to produce too much power, or you’ll never use all the credits you receive. While wasted credits don’t lose your actual money, you still might consider it an inefficient use of energy.

Time Your Energy Usage

To ensure you don’t run through all your credits when you’re not producing power, you should focus on your greatest power usage during the day when you’re producing electricity. For example, you don’t want to charge your car at night because you’ll quickly exhaust your credits and start paying for power. Don’t leave lights on you’re not using, and use other power conservation methods.

Monitor Rate Changes

You should stay aware of any changes to the one-to-one value you receive for your power. However, you should also know how much people are currently paying for power. This puts a quantifiable value to the money you’re saving rather than just knowing how many kilowatt-hours you have.

Schedule Solar Panel Installation With RxSun

If you’re interested in solar net metering or solar panel installation, RxSun always provides high-level service. From expert advice to installing premium and efficient solar panels, we’ll help you achieve energy independence and considerable savings. Get more information or obtain a free quote by calling 800-607-9786.