What exactly is that net metering thing you’ve been hearing about? Let’s take a look at what net metering, how it benefits you, and the future of net metering.
What is Net Metering
Net metering is essentially an agreement with your utility that allows you to receive credit for excess renewable energy produced by solar panels. A net meter will track the energy consumed by your home and the energy produced by your solar panel system. Your home will use the energy being produced by your panels but if excess energy is produced it gets sent to the utility.
If your solar PV system generates more electricity during a billing cycle than your home consumes, you will receive bill credits that can be used to offset future usage.
How Net Metering Benefits You
One of the best aspects of net metering is that it reduces your overall cost on your solar array. Rocky Mountain Power is currently offering one to one net metering which means that for each watt that gets sent to the utility grid from your solar panels, you get credited one watt for future use. This allows you to run your home and produce extra power during the day, then use your credits at night. This reduced your power bill even more and decreases the payback time on your panels.
The Future of Net Metering
Net metering has been a hot topic of discussion in Utah as well as in other states with great conditions for solar. The main problem is that utility companies like Rocky Mountain Power have begun the process of getting rid of net metering as we know it. Rather than a one to one program they are starting to turn the tables in their favor. Paying out only a percentage of each watt rather than the whole thing.
The most effective way to ensure that you receive the current benefits of net metering is to get connected now and to get grandfathered in when the utility companies decide to change it like they did in Hawaii and Nevada.