Net Metering

August 3, 2015

Net Metering

What is Net Metering and How Does it Work?

Net metering is your home or business selling solar electricity back to the electric company/utility. For example, if you install solar power on your home or business and that solar power system produces more energy than your home or business needs, the extra energy gets sent back to the electric company and you get a credit on your bill.

Net metering happens everyday for most homeowners with solar power. When you leave for the day to go to work, your solar power system is producing power that your house is not using. That extra power is being sold back to the electric company thanks to your net metering agreement with them. In most cases you will get paid the exact rate you would pay for electricity ($.12/kWh). This means that when you get home from work, your home has an excess of power or a credit of electricity! Think of it as storing your excess energy with the electric company for later use.

Florida does participate in the same net metering policies as most other states in the US. It’s a good idea to check with us so we can tell you the specific requirements for your utility company (Duke, Progress Energy, FP&L, TECO, etc.).

What is the “Grid”?

Before moving on, one thing to understand. The electricity “grid” is a network of power lines that connect all homes and businesses to a central power plant (where all the power comes from). These power lines are charged with electricity that is ready to be used by you and me. When people come home from work, the electricity grid experiences a big spike in demand and power plants need to kick-in more power.

The more the power plants contribute, the dirtier the energy and the methods for creating that energy.

Why Net Metering is Great

With solar power, your home or business sends its excess energy back to the grid and you get credited accordingly. The best part is that excess energy is not actually sent all the way to the power company. It’s used by your neighbors! So you are acting like a small, clean energy power plant. The solar energy that you don’t use is directly off-setting the big dirty power plants by providing energy to a home or business that needs it at that time.

The more solar energy systems on homes and business, the less we need to rely on the power company and their big dirty power plants.

Still have questions? Contact us HERE

More Net Metering Resources

DSIRE USA – Click Here

Solar Energy Industries Association (SEIA) – Click Here