It is now easier than ever to generate electricity. The dramatic drop in prices over the previous decade, along with regulatory incentives for rooftop systems, has enabled consumers to install solar systems on their rooftops and enjoy the benefits of solar net metering. So, let’s move to details and see how is net metering profitable many more concepts regarding Net Metering are explained thoroughly in the article.

What is Solar Net Metering? How Net Metering Works?

JAN23solar net metering

Solar Net metering, also known as net energy metering or NEM, is a utility rate policy that mandates your electric provider to acquire the surplus solar energy produced by your solar panels at full retail price.

Net metering credits you for returning solar electricity to the grid and offsets future electricity purchases from the utility, providing you the full economic value of any solar energy produced by your solar panels. If your solar system is suitably sized, you may be able to remove all of your monthly electric expenditures.

Solar panels produce the greatest electricity when the sun is shining in the middle of the day. The problem is that you use the least amount of electricity in the middle of the day. As a result, your panels are producing far more electricity than your home requires at the time.

When solar panels generate more electricity than a home requires, the excess is fed back into the grid. Solar Net metering is useful in this situation. When a net metered system transfers solar energy to the grid, your electric meter reverses and your utility credits your account for the full retail value of electricity.

Then, at night, when your solar panels aren’t producing, you draw power from the grid, turning your meter ahead once more The utility calculates your total cost at the end of the billing month based on how much electricity you delivered to the system versus how much you used.

How is Net Metering Explained Simply with a Net Metering Example?

Net metering is a utility billing method that is accessible in the majority of states and provides credit to residential and commercial customers that generate extra electricity with their solar panel systems and transmit it back to the grid.

A net metering example would be if a residential customer has a PV system installed on their roof, it may produce more electricity than the home consumes during the day. If the home is net-metered, the electricity meter will run backward to provide a credit against the amount of electricity spent at night or during other times when the home’s electricity consumption exceeds the system’s output. Customers are only charged for their “net” energy consumption. Only 20-40% of a solar energy system’s output is exported to the grid, and this exported solar electricity supports loads of neighboring consumers.

Also Read: Solar, Storage, and Smart Grid Transform Electric Utilities

What are the 3 types of Net Metering?

The three types of Net Metering are as discussed:

1. Virtual Net Metering (VNM): Virtual Net Metering (VNM) is a method that provides energy credits to those who have signed up for a community solar project, such as a solar farm. VNM allows consumers to reap the benefits of solar without having to go through the hassle of putting panels on their own roofs. Those who subscribe to community solar and use electricity from an off-site solar garden or solar farm will almost certainly qualify for energy credits via virtual net metering. Customers in this scenario receive credits based on the number of solar panels they contribute to the community solar project.

2. Aggregate Net Metering: Aggregate Net Metering (ANM) is a modified form of net metering. It enables a single client to offset electrical consumption from several meters on his or her property by utilizing a single renewable energy-generating equipment. For example, deploying a single renewable energy system to power many apartment/condo units.

3. Remote Net Metering: Remote Net Metering is a technology used by farms and non-residential clients to collect credit and lower their electric costs. Customers that have wind, solar, or other electric-generating equipment in one location use the excess electricity generated to earn credit. This permits energy system owners who have extra net metering credits to use them to offset their other electric bills.

Also Read: 3 Leading Types Of Solar PV System

What are Net Metering Rules for Billing?

The owner gets invoiced for the net energy consumed in net metering, which is the difference between the total energy produced by the system and the total energy consumed. The following are net metering rules based on which the bill is generated.

The difference between excess power exported back to the grid and total electricity consumed by the owner is accounted for via net metering. As a result, surplus energy generates money, while energy shortages are met by the system. Each state may have distinct rules regarding the type of net meter used to record power.

In some states, only one meter is required to measure the net amount of power utilized by the owner. Other states, on the other hand, require two meters to compute the amount of power consumed by the owner from the grid as well as the total amount of power generated by the owner’s system. These are some basic Net metering rules.

Is there a Net Metering Calculator Available Online?

If you are wondering is there a Net Meter Calculator available online for accuracy checks? then yes, there are a few net meter calculators online. They can be used to quickly assess solar potential and savings based on your location. Their estimates are based on the consumer’s roof, power bill, and current offerings in that specific location.

Is Net Metering Profitable?

Yes, net metering is the ideal profitable solar policy since it allows you to store every unit of energy produced by solar and use it from the grid at a later time. In fact, by offsetting your need for grid electricity, you can save tens of thousands of dollars over the lifespan of your solar panel installation.

While net metering is not the only way utilities reimburse households for choosing solar, it is now the most prevalent and effective solar program.

Also See: Improving the Journey to Work Benefits Commuters, Communities, and Companies

What are the Pros and Cons of Net Metering?

Net metering is a program given by some utility providers in which a customer can receive a credit from the firm if they generate more power than they use. The pros and cons of net metering are as follows-

Pros of Net Metering

  • The pros of net metering are that you can power your home or business with solar (or wind) energy and be self-sufficient, while also having the security of backup power from the grid if needed.
  • If you have a PV array but no battery for storage, you’ll almost probably want to connect to the main power grid so you can obtain power when the sun isn’t shining. In such a circumstance, applying for net metering almost likely makes sense.

Cons of Net Metering

  • The con of Net metering is that it increases the cost of electricity for residences that do not generate their own. It makes it more difficult for utilities to arrange power generation.
  • Utility firms devote enormous resources, time, and effort to preventing state regulators from mandating net metering. They do not want to be obliged to pay customers for power, and they definitely do not want to pay more than they charge.

All-in-all Net Metering is particularly significant for solar energy since, unlike other kinds of renewable energy, solar energy is produced extensively in the residential and commercial sectors with the help of solar panels.

The article follows net metering explained, types of net metering, how net metering works, net metering example, net metering rules, Is net metering profitable, net metering calculator, pros and cons of net metering all the briefs you need to know before switching to solar.

Recommended: 5 Disadvantages of Solar Water Pumping Systems


Olivia is committed to green energy and works to help ensure our planet's long-term habitability. She takes part in environmental conservation by recycling and avoiding single-use plastic.

Leave A Reply