LITTLE KNOWN, BUT BIG REASON TO GO SOLAR #2





10/30/19



MONEY TO THE PEOPLE:

WHAT IS NET METERING?





What is Net Metering?

Net metering is what allows a residential customer to send unused electricity to the electric grid and the utility company pays the customer for the energy. The compensation instrument for net metering varies from state to state. However, this writing will focus on Texas. Texas has a net metering law (For other states, feel free to contact Orixas, LLC).


In effect, net metering allows solar customers to sell their excess solar power to the utility company. So, the customer becomes an electricity generator and their meter spins backwards. When the meter spins backwards, the customer gets a credit for what is supplied to the grid. The meter spins forward at night, or at times when the customer's electricity needs are greater than the system can generate. When the meter spins forward, the customer draws from the credits that have been built up. As a result, the bill that the customer will see is the “net” amount

ExcessPowerToGrid – PowerFromGrid = NetAmount

In sum, when the customer generates more electricity than they use, they accumulate energy credits. When the customer needs more that they can generate, they withdraw from the energy credits. Depending on your utility, you may get cash at the end of the year for unused credits.


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