Net Metering - What is it?
/What is Net Metering? When your solar system generates energy it offsets the cost of your power usage through your utility company.
How it works:
When your system is generating more power than you use, it flows back into the utility grid making the meter ‘run backwards' and creating a possible credit to your account. When you use more energy than your system generates, you take energy from the utility grid. A specific meter will be installed to measure the energy used by your home.
Net Metering allows customers with solar systems to cut down on energy costs and can even zero out their rates. It also is a great way to measure your energy usage and performance stats of your solar system.
In the Bay Area, PG&E is the major energy provider. They currently provide two ways to apply Net Metering;
- Standard Rate Schedule: cost per kilowatt is a set number and will not change by time of day
- Time-of-Use Rate Schedule: cost per kilowatt varies by season per day. Peak Hours apply.
To read more about these schedules click here
With a Net Metering agreement with your utility company you can elect to receive a monthly bill for your net usage or ‘settle’ your account after a 12 month period.