Your Comprehensive Guide To Solar Net Metering

Everything You Need To Know About Solar Net Metering

With solar panels taking over the country and more homeowners using renewable energy sources, it's time to get the inside scoop on all the perks it offers. Let's see how you can make money and save money the renewable way using solar panels and net metering.

What is Solar Net Metering?

Net metering is a utility rate program that allows your power company to buy the unused solar energy your solar panels produce at the total retail cost of electricity. When your solar energy panels have more electricity than your home or property requires, the extra solar energy goes back into the power grid, and the power company will pay you for your excess solar energy.

How does Net Metering Work?

Net metering will allow rooftop solar energy panel owners to participate in the electric power grid as a distributed solar energy producer. When the homeowner installs solar energy panels on their roof, it will connect the solar panels to the grid through an electric meter and existing distribution lines. At first, the solar panels will supply the power to the home; if the homeowner needs and uses more power, the house will pull power from the grid. The electricity meter records how much energy the home draws from the grid. Now, if the homeowner's solar energy system produces more than what the home needs, the power will get drawn back into the power grid to be used by other customers.

When the home has a net metering system, the electricity meter will run backward to provide a credit against what electricity was consumed at night or other periods when the home's electricity uses or if it exceeds the system's output. Solar energy customers will only be billed for the net power used. Depending on the size of your solar energy panels, ideally, your solar energy system would produce enough energy to power your home for an entire year. Solar energy will vary depending on the time of the year. For example, you would get more power during the summer months and produce less electricity during the fall and winter months. When that happens, net metering will help you make up for the seasonal difference in solar energy production while giving you credit to use later.

What if My State Doesn’t Offer Net Metering?

You can invest in solar battery storage if your state doesn’t offer net metering programs or has bad net metering policies. So what exactly does that look like, and how does it work? Here are two types of solar storage batteries available:

1. AC Coupled Solar Battery - An AC-coupled battery system feeds the Direct Current [DC] produced by your solar panels through the traditional standalone string inverter & then into the Solar Battery system for storage and use at a later time. A great example is the Tesla powerwall. Both single-phase and 3-phase properties can utilize the Tesla Powerwall battery system for solar energy storage.

   This type of solar battery is unique as it accepts AC current from the solar inverter and it stores it inside the battery component. In addition to the battery component, which holds power, these AC-coupled battery devices also have an in-built rectifier/inverter, which converts some of the AC currents back to DC within the battery system, so it can charge the battery component. The portion of the AC power that gets fed to the battery component is then fed back to the house via the meter box, so it can be used within the dwelling.

2. DC Coupled Solar Battery - Your battery needs to be connected to a ‘hybrid inverter’. A hybrid inverter is a battery charger and a traditional solar inverter in one. Essentially the power comes in from the solar panels in DC form [or Direct Current], which feeds into the battery via the DC battery charger. The battery then sends the DC power back through the charger component and into the inverter. The inverter component then converts the DC to AC. The Alternating Current [AC] is fed back to the house via the meter box.

   Batteries like the LG Chem Resu need this hybrid inverter to achieve the DC coupling setup. Please note these products are limited to single-phase properties. Further specialty conversion devices are required if this battery setup is required for a 3 Phase property.

A solar battery can be added to your solar power system to store the excess that your home or property doesn’t use. You can then use that stored energy to power your home when your solar panels don't generate enough electricity, including nights, cloudy days, and during power outages. So even if your state offers net metering, adding a solar battery is still a great addition to your solar system.

Can You Get Paid for Solar Net Metering?

Yes, you can! The power company will compensate you for your excess solar power. The pricing and payout will vary depending on your current solar status, and it will also depend on where you live in the U.S. The payout will also vary depending on the price of the power that's generated. If you and everyone in your neighborhood are using solar energy, that could limit your payout from the electricity provider. The power company would only be able to pay out some, which could cut down the value of solar power. Power companies typically pay around $0.15/kWh in California and $0.08-0.09/kWh if you live in a different state.

Does Selling Solar Energy Back to the Power Grid Save Me Money?

A home solar energy system can lower your monthly power statement by hundreds of dollars. Depending on how much solar you produce, you save around $50-$700+ per month. The payback for installing solar can be exponential. Many homeowners who install their solar power systems can see payback periods as low as five or six years. Some have reported profits in less than a year of installing solar.

What Types of Solar Net Metering are Available?

There are currently three types of solar net metering models, varying depending on your state and your current power provider.

Net Metering

Net metering that we've discussed today is the most common arrangement. Net metering works by selling any surplus power generated by your solar panels to the power grid in exchange for credits, which will offset any electricity you may need to use from the grid. The credit will be applied at the retail rate and the rate you pay for your power. This type of metering only requires one meter.

Buy All/Sell All

The buy all/sell all model works by selling 100% of your solar panels' energy to the power company. This model is sold wholesale, and you continue to buy 100% of your home's energy from the power provider through the existing meter. This model does require that you have two separate meters.

Net Billing

Net billing is very similar to the net meeting, allowing you to use the electricity generated by your solar panels and sell the excess to the utility company at retail price. The difference is you won't have credits available for future billing cycles. Net billing is more commonly used for commercial properties versus residential properties.

"All energy is ultimately derived from the sun, and harvesting it directly through solar power seems to be the best way to transition to renewable energy." - Peter Rive

Are you looking for more information on renewable solar energy? Energybillcruncher can see if you qualify for your solar project and solar incentives and solar rebates in your area.

Key Takeaways:

• Net metering credits solar energy system owners for the electricity they add to the grid.
• Homeowners can now sell power back to their power companies.
• See if you qualify for $0 down solar installation and solar incentives.