Imagine installing solar panels onto your rooftop. The sun is shining, your panels are absorbing electricity, and you feel pretty good about helping the environment. A twist is in store – if you have a system that produces more power than your actual consumption, what will happen? Net energy metering, or NEM, is a neat procedure that converts your surplus solar power to credits.
Net energy metering allows those who generate electricity themselves to feed the surplus back into grid. Imagine this as your own energy bank. When you generate more energy than is required, you deposit that excess. You can also withdraw energy if your system is not able to provide the amount of energy you need.
What if you could have the best of both worlds? Yes, it’s true. How will this affect the environment and finances? By feeding excess electricity into the grid, you can drastically reduce your energy bills. In a hot, sunny month your panels could produce more juice. This excess isn’t wasted and sent to grid earning credits you can use during periods when panels are less efficient, such as in the evenings or on cloudy days.
NEM’s mission goes beyond saving money. It promotes sustainability. By using renewable resources to the maximum, we can reduce our reliance on fossil fuel-fueled power plants. These emit harmful emissions to Mother Nature. NEM users, in essence, aren’t just saving money. They’re actually environmental superheroes – without the capes.
There’s more to it than rainbows and sun. The policies that govern net metering are often inconsistent, leading to a patchwork system of regulations which can cause confusion for solar adopters. NEM laws vary in each state. These rules may change as a result of changes to political winds or strategies. This means that staying informed on local energy regulations is just as vital as watering the plants.
Do you plan to implement net metering any time soon? Consider this advice: Check the specifics in your locality’s policy on net metering. Some utilities set limits on how much solar energy they can accept from household systems. Aside from the incentive offered, rates can also fluctuate, including the credits granted for excess energy sent back into the grid.
Another issue could be the upfront cost. The upfront cost of solar panels is significant, even though prices have fallen over the years. The rising cost of nonrenewable energy makes this investment a smart one, especially with net metering.