Imagine you’ve installed solar panels on the roof of your home. Your solar panels are absorbing all the energy that comes from the sun and you feel great about your contribution to a more sustainable planet. The story takes a turn when your solar system produces more energy than what you use. Enter net-energy-metering (NEM), which can convert your surplus solar energy into credits.
Net energy billing is a way for individuals to bill themselves when they generate their own energy. This allows them to feed excess energy into the grid. Imagine your energy savings account. You can deposit extra energy if you are able to produce more than is needed. In the event that your system fails to meet your needs for energy, you may withdraw any deposited funds.
Do you think it’s possible to get your cake, and eat it too? This is because it’s kind of true. How is this all going to work financially and ecologically? In the first place, if you feed excess energy to the grid using NEM, your electricity costs can be significantly reduced. In a bright month, the panels could produce more energy than you drink. This excess isn’t thrown away, but sent back to the grid. Credits are earned that you can use when your panels become less productive like during cloudy times or overnight.
NEM goes beyond personal savings to promote sustainability. The use of renewable energy reduces our dependency on fossil-fueled plants which cause Mother Nature to be bullied by their emissions. NEM users save money and are also heroes for the environment, even without wearing capes.
There are some downsides to solar energy. Solar adopters can get confused by the patchwork of rules and policies that govern net energy metering. NEM rules vary by state. They can also change based on changes in energy or political strategies. Staying up to date on local energy laws is essential, just like watering your plants.
You’re thinking about implementing net metering soon? Take a look at the net metering rules in your region. Some utilities place limits on the amount they will accept as solar energy from residential systems. Further, incentives can be changed, as well as the rate at which credits will be given for excess energy returned to the grid.
One other issue is the cost to install solar panels. Solar panels do not come cheap. Prices have declined over the past few years but the initial cost remains high. In the long-term, however, the investment in solar panels could be the best choice, given the cost of non-renewable power.