What Happens With Unused Solar Power? Net Metering Explained
Solar panels are becoming more and more popular as renewable energy sources, and the ability to send unused power back to the electric grid is the primary benefit, making them more attractive. Net metering is an important concept to understand when installing solar panel arrays, as it allows homeowners to be able to send unused power to the grid in order to not only save money but also to earn financial incentives and credits for future electric use.
What is Net Metering?
Net metering is the process of sending unused solar power back to the electric grid and receiving a credit against future electric use. It is a system developed by utility companies so homeowners and businesses utilizing renewable energy can take advantage of both the cost and environmental benefits. Net metering allows solar panel owners to be compensated for their unused power, allowing them to become independent energy producers.
Definition of Net Metering
Net metering is a process by which electric customers receive credits on their energy bills for any energy they feed back into the electric grid. Generally, the energy is generated by an onsite solar panel array; when there is an excess of power being produced by the array, the homeowner will receive credit for that excess.
Discussion of How Net Metering Works
Net metering is based on a simple principle: when the solar panel array is producing more energy than is being used within the home, the surplus is automatically sent to the local electric grid. The excess energy is then credited on the homeowner’s energy bills. When the solar panel array produces less energy than is required, the homeowner makes up the difference by pulling from the local grid. The net metering process is completed after the net energy produced is equal to the net energy consumed.
What Happens With Unused Solar Power?
When solar panel arrays produce more energy than the home is using, the excess energy is automatically exported to the electric grid. The homeowner is then credited with a ‘net metering’ credit on the energy bill, which can be used to offset future energy costs. This means that the homeowner is not only saving money, but they are also able to take advantage of financial incentives offered by their utility company.
Details of How Unused Solar Power is Exported to the Electric Grid
Unused solar power is exported to the electric grid via the power lines of the utility company. The unused power produced by the solar panel array is sent to the local utility company, who then credits the homeowner’s energy bill for the excess power. This credit is added to the homeowner’s balance and is applied to future energy costs.
Financial Incentives of Using Net Metering
Utility companies often offer financial incentives for homeowners who are using net metering. These incentives can range from discounted rates to monetary rewards. In addition, some states offer a solar energy tax credit, which allows homeowners to receive a tax break for their energy production.
Why is Unused Solar Power Valuable?
Unused solar power is valuable because it is an efficient and sustainable form of renewable energy. By utilizing the net metering system, homeowners are able to save money and reduce their carbon footprint. In addition, utilities benefit by receiving power from renewable energy sources and are not having to turn to more expensive methods of power production.
Benefits to Homeowners, Utilities and the Economy
Using unused solar power has benefits for homeowners, utilities and the economy. Homeowners are able to reduce their energy bills and make use of financial incentives. Utilities are able to receive reliable renewable energy that does not have to be sourced from conventional sources. Finally, the economy benefits from renewable energy sources reducing our reliance on traditional power sources and reducing the need for expensive new infrastructure.
Conclusion – Understanding What Happens With Unused Solar Power and the Benefits of Net Metering
Net metering is an invaluable service offered by utilities that allows homeowners to be compensated for any unused solar power they produce. Homeowners are able to receive credits on their energy bills and receive financial incentives offered by their state or utility company. On top of this, net metering allows utilities to source their power from renewable energy sources while reducing our reliance on conventional energy production and saving the economy money.
FAQs
Questions about Net Metering, Unused Solar Power and Financial Incentives
1. What is net metering?
Net metering is the process of sending unused solar power back to the electric grid and receiving a credit against future electric use. It is a system developed by utility companies so homeowners and businesses utilizing renewable energy can take advantage of both the cost and environmental benefits.
2. How does net metering work?
Net metering is based on a simple principle: when the solar panel array is producing more energy than is being used within the home, the surplus is automatically sent to the local electric grid. The excess energy is then credited on the homeowner’s energy bills. When the solar panel array produces less energy than is required, the homeowner makes up the difference by pulling from the local grid. The net metering process is completed after the net energy produced is equal to the net energy consumed.
3. What benefits come from using net metering?
The primary benefit of using net metering is the ability to save money on energy bills and to be compensated for unused solar power. In addition, some states offer solar energy tax credits for those who are using net metering.
4. Where does unused solar power go?
Unused solar power is exported to the electric grid via the power lines of the utility company. The unused power produced by the solar panel array is sent to the local utility company, who then credits the homeowner’s energy bill for the excess power. This credit is added to the homeowner’s balance and is applied to future energy costs.
