Understanding Net Metering

Net Metering is an essential component of solar productivity in the state of Colorado. This allows both homeowners and business owners to maximize on their solar savings potential. But what exactly is net metering? Net metering is a billing incentive established by the utility companies that essentially uses the electrical grid as a backup battery.

But how exactly does this net metering work? Solar systems come equipped with a smart meter. This meter allows monitorization of energy importation and exportation. When the solar system produces more energy than the property is using the excess is sent to the grid and tracked through the smart meter. Later, when energy usage exceeds solar productivity (like at night, when the system isn’t capturing UV rays to convert to energy) the home, or business, would import energy from the grid. This energy importation and exportation is essential in attaining the maximum value out of solar-produced energy as the highest energy usage typically falls during the morning, and evening hours - the low points of solar-produced energy.

But what if my solar system produces more energy than I use in any given month? Then you receive a credit! This credit can be applied as a pay-out. That’s right, the utility companies can actually cut you a check for solar energy. You’ll be producing energy not only to cover your needs, but also to help maintain lower grid loads because the excess energy can actually be sold to your neighbors! Rates for net metering are subject to change and local regulatory rates, but a general rule of thumb: Try and match total solar energy production with the home or business’s total annual energy consumption. So not only are these solar systems offering a level of energy independence, they additionally help spread renewable energy across the grid and, in turn, reduces grid reliance on alternative energy sources. It’s a win-win and a step towards a cleaner, better future.