Your Ultimate Guide To Solar Net Metering

The Ultimate Guide to Solar Net Metering: A Comprehensive Overview

As solar panels continue to gain popularity nationwide and an increasing number of homeowners adopt renewable energy sources, it becomes essential to explore their numerous advantages, including net metering! We will delve into the world of solar panels and net metering, revealing the various benefits that can be derived, including both financial gains and savings, all achieved through the sustainable and environmentally friendly utilization of solar energy.

What Exactly Is Solar Net Metering?

Net metering is a utility rate program that enables homeowners or property owners with solar panels to utilize and monetize their excess solar energy production efficiently. Under this program, any surplus electricity generated by solar panels beyond what the property consumes is seamlessly fed back into the power grid. The power company, in turn, credits the owner for the surplus energy at the total retail cost of electricity. Net metering allows you to offset your energy costs by effectively selling your unused solar energy to the utility company, ensuring no potential energy goes to waste and providing a financial return for sustainable energy production.

How Does Solar Net Metering Work?

Net metering allows rooftop solar panel owners to actively participate in the electric power grid by becoming distributed solar energy producers. Homeowners can efficiently utilize solar power by installing solar panels on their roofs and connecting them to the grid through existing distribution lines and an electric meter. Initially, the solar panels supply electricity to the home; if additional power is needed, the house pulls electricity from the grid. The electric meter accurately records the amount of energy drawn from the grid. However, when the solar energy system produces more electricity than the home requires, the excess power is fed back into the power grid, making it available for other customers to utilize.

In a net metering system, the electric meter effectively runs backward, providing a credit against the electricity consumed during periods when the home's electricity needs exceed the solar system's output or during nighttime usage. As a result, solar energy customers are billed only for the net power used. Ideally, depending on the size of the solar panel system, it would generate enough energy to meet the home's power requirements throughout the year. Solar energy production varies with the seasons, with greater output during the summer months and reduced electricity generation in fall and winter. During lower solar energy production periods, net metering compensates for the seasonal differences by providing credits that can be utilized later, ensuring a balanced and cost-effective energy supply for the homeowner.

What If My State Doesn’t Offer Solar Net Metering?

Investing in solar battery storage can be a viable alternative when your state lacks net metering programs or has unfavorable net metering policies. Let's explore two types of solar storage batteries available:

AC Coupled Solar Battery:

An AC-coupled battery system channels your solar panels' Direct Current (DC) through a standalone string inverter and subsequently into the solar battery system for storage and later use. One notable example of this type of battery is the Tesla Powerwall. Single-phase and three-phase properties can leverage the Tesla Powerwall for efficient solar energy storage.

What sets AC-coupled solar batteries apart is their ability to accept AC current from the solar inverter and store it within the battery component. Alongside the battery, these AC-coupled battery devices feature a built-in rectifier/inverter, which converts a portion of the AC current back to DC within the battery system, enabling it to charge the battery component. The AC power allocated to the battery is then redirected to the house through the meter box, making it available for consumption within the property.

DC Coupled Solar Battery:

For a DC-coupled solar battery system, your battery must be connected to a "hybrid inverter." This type of inverter is a battery charger and a conventional solar inverter. Initially, the power is received from the solar panels in the form of DC (Direct Current), which is then fed into the battery through the DC battery charger. The battery, in turn, sends the DC power back through the charger component and into the inverter. The inverter converts the DC to AC (Alternating Current), subsequently supplied to the house via the meter box.

Batteries like the LG Chem Resu require a hybrid inverter to establish the DC coupling setup. It's important to note that these products are typically suitable for single-phase properties, while additional specialized conversion devices may be required for a three-phase property.

By incorporating a solar battery into your solar power system, you can effectively store any excess energy your home or property doesn't immediately consume. This stored energy can then be utilized to power your home during periods when your solar panels are not generating sufficient electricity, such as nights, cloudy days, or even during power outages. Even if your state provides net metering, integrating a solar battery remains a valuable addition to your solar system, ensuring enhanced energy independence and resilience.

Do You Get Paid For Solar Net Metering?

Yes! When you make the switch to solar panels, the power company will compensate you. The specific pricing and payout structure may vary based on various depending, setups and geographical locations within the United States.

If you and your neighbors are also utilizing solar energy, the potential payout from the electricity provider could be limited. In such cases, the power company would only be able to pay out a portion of the excess power, which may reduce the overall value of your solar energy. For instance, in California, power companies typically offer a payout of around $0.15 per kilowatt-hour (kWh), while in other states, the payout ranges from $0.08 to $0.09 per kWh.

It's advisable to consult with your local power company or solar energy provider to obtain accurate and up-to-date information regarding the specific compensation rates applicable in your area.