Consider Net Metering And Solar Energy
If you're not sure whether you're ready to convert your home to solar energy through the installation of solar panels, you should consider utility company practices that might influence your decision. Use the suggestions below to consider whether net metering should be a factor you consider when deciding whether to install solar panels.
Research your state's policies about net metering which is a practice that distributes the costs of renewable energy to customers of utility companies by raising electricity rates charged by utilities. Most states have utility companies that use net metering.
You are not supporting government spending on renewable energy if you participate in net metering. It is a program implemented by utility companies to meet renewable energy requirements that results in compliance with state laws for utility companies and financial benefits that come from utilities and go directly to consumers with solar panels.
Net metering is different from rebates offered by federal or state governments for the cost of installation of solar panels and only takes effect after you've installed your solar panels.
If you install solar panels net metering will help you offset your electric costs for those times when you're using more power than your home is producing because you can sell solar energy back to your utility during those times when you are producing more energy than you're using.
There is no interruption in your energy to your home but only changes in billing. If it's sunny and you're producing more energy than you need that energy is automatically used by your utility which will provide you with credits for the use of your solar energy. If it's nighttime or cloudy and you're using more energy than your solar panels are producing then you'll be purchasing power from your utility.
Even if you don't install solar panels you will participate in supporting renewable energy by paying more for your electricity. Today policies require utility companies to use renewable energy as a percentage of the energy they supply to customers ranging from about 10 to 33 percent. By purchasing excess solar energy from customers, utilities are getting less money from customers who have solar panels both because energy bills are lower and because the utility is buying customers' excess solar energy. In order to keep their profits up, utility companies raise their rates so that the cost of electricity goes up for all customers.
While net metering can further reduce your energy costs if you install solar panels, there remain many factors including cost that are important to consider before you choose solar panels for your home.
Pay attention to changes in rules and practices regarding net metering especially regarding caps on how much solar energy a utility will purchase from customers. These caps are subject to change by the utility because once they've met their requirements for using renewable energy they don't need to purchase your excess solar energy.
Net metering is a utility billing practice that can help you decide whether you're ready to install solar panels on your home. Use the considerations above if you're considering transitioning to solar energy.
