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What is Net Metering?

Net metering allows you to get “paid” for the excess energy your solar panels produce. This is a great incentive for jumping into the world of solar power!


To understand how net metering works, you’ll first want to understand the role the meter plays in relation to your solar panels.


In any solar panel system, there are three main components:


  1. The solar panels

  2. The inverters

  3. The meter


The meter monitors all of the energy being converted by the inverters and how much of that energy is being used by your home. If you’re producing more power than you’re consuming, the excess is sent into your local grid, and you’re awarded credits  ̶ ̶  your meter actually “spins” backwards to keep track of these transactions.


What can you do with your credits?


Every state is different, but generally, there is no cashback involved. When you need energy at night and your solar panels just won’t do, the energy you consume from the grid gets paid for using your stored credits. You’re getting energy for free!


And if you don’t use your credits for the day or month, they carry forward. However, most utilities have a credit expiration date, so you should consult with your utilities provider for specifics.


If you’re interested in net metering, you should know that the program differs state by state, as some states call it a “value stack.” You can see which type of net metering program is offered by your utility and how much you’ll earn going solar by contacting them directly or working with an Energy Consultant.

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