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How to Save on Solar With Net Metering

| 3/15/2017 1:52:00 PM


Since 2009, solar prices have gone down 62 percent, with every part of the supply chain trimming costs, according to Bloomberg news. Advancements in technology also play a large part in cost reduction by improving efficiency and energy output, which in turn lowers a system’s cost per kWh. The evolving solar power landscape continues to make it easier and cheaper for all types of households to adopt solar. There are several more ways that you can save on the cost of going solar, one of which has to do with policies determined on a state level, namely net-metering. Let’s look closer into exactly what net metering is and how it can save you hundreds of more dollars each year paired with your solar panel system.

Net Metering Basics

Net metering refers to the billing procedure that allows residential customers who produce their own electricity from solar power to feed excess electricity back into the utility grid. The owner of the system for that electricity then receives credit at the same retail price that paid for electricity taken from the grid. What this means, is that if you have a residential solar system that is net-metered, your electricity meter can run actually backwards to provide your credit against what electricity you use from the grid, since you’re only billed for the net energy you use. You basically get paid for any excess energy that you produce but don’t use. This can add up to a lot of savings in the long run and offset the initial investment cost of your solar panel system.

Net metering policies are decided on and regulated by each state differently. A majority of states in the U.S have authorized net metering, but even then, they all have different approaches to policies with variations in multiple criteria. The differences between state regulation mean that the cost benefits of net metering can vary. If you live in a state without net metering, you can still receive credit for excess electricity, just at a different rate. In these cases, the utility company will likely pay you back at the wholesale rate, which is usually lower.

Best States For Net Metering

States with vast solar adoption and net metering programs allow solar system owners to get the most money out of their investment. Some states that are leading the way in solar-friendliness include Massachusetts, Rhode Island, and California.

7/4/2017 9:33:46 PM

this is no more than a newspaper article. It does nothing to tell someone how to save money with net metering. Please articles with real data.

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