New Energy Insights

Net Metering: What is it & why does it Matter?

Written by Kyle Wehnes | Aug 19, 2020 9:32:15 PM

What is Net Metering?

Net metering allows solar system owners to send extra energy they produce into the power grid. So if the system produces more than what they use, the energy sent into the grid is credited. Basically meaning their electric meter runs in reverse.

But Don’t be Fooled.

The promise of earning additional income from the practice is nearly a myth. While it provides FANTASTIC credits & savings to your bill, your system usually won’t produce more than you use.

Why is it Important?

  • Firstly, it allows you to save more on utility bills with clean energy.
  • Secondly, it increases the amount of energy that the utility grid receives from renewable sources.
  • Thirdly, it protects the power grid, allowing utilities to better manage peak loads.
  • Lastly, it increases clean energy demand, creating jobs.

A Brief History of Net Metering

Beginning in the late ’70s, Steven Strong installed 2 solar systems, but he forgot to tell the utility company that his system fed excess power into the power grid.

Fortunately, it all worked, and as a result, several officials from the state and utility company were invited to the grand opening of the projects. As a result of hearing the state officials applaud Strong’s innovation, the utility company ultimately shared their praise.

After a very positive PR response, clean energy companies across the US adopted the practice. Later on, Strong won several awards from federal agencies and was dubbed “Hero of the Planet” by Time Magazine.

 

US States & Territories with Net Metering Laws

In our home state of Minnesota, clients are only billed for their net usage. When excess energy is generated during the day, the utility company has to pay the market rate when crediting their bill.

Alaska Kansas New Jersey South Carolina
American Samoa Maine New Mexico U.S. Virgin Islands
Arkansas Maryland North Carolina Vermont
California Massachusetts North Dakota Virginia
Colorado Minnesota Ohio Washington
Connecticut Missouri Oklahoma Washington, D.C.
Delaware Montana Oregon West Virginia
Florida Nebraska Pennsylvania Wisconsin
Guam Nevada Puerto Rico Wyoming
Iowa New Hampshire Rhode Island  

Source: (Solar Power World, dsireusa.org)

 

 

New Energy Equity is happy to provide solar development services in Minnesota and across the Midwest. If you’re ready to start saving with solar, feel free to contact us