One way to use solar power to save money is through the use of a practice called “Net Metering.”

What is Net Metering?

Net Metering is the practice of consumers “selling” energy to the electricity companies when they have some form of renewable energy facility installed at their home and a surplus is created.

A good example of net metering would be the case of someone who owns solar panels or owns a wind turbine. If his solar panels or wind turbine generate more electricity than he consumes, the excess electricity is fed into the electrical grid, and the power company buys the electricity from him.

Net metering is a result of green energy policy. Though its not generally known, its not a new thing.

– Why is it Called Net Metering?

The term “net metering” is a combination of the words “net” and “metering.” In this context, “net” means “what remains after deductions” and “metering” refers to the measuring of electricity of your home’s electricity meter (which is used to calculate your energy bill).

– How Net Metering Works

Lets take the example of a home owner who has installed solar panels as a clean renewable energy source on his home.

If, at any time, his solar panels are producing more electricity than his home is using, the excess electricity is automatically fed back into the electrical grid, and redistributed by the power company. The amount of electricity fed back into the electrical grid is measured on a meter right in his home. The home owner is then “paid” or credited for that electricity.

– How to Find Out About Net Metering

Net metering is usually done through your power company. You should check directly with your power provider.

One thing you should know is that many states have laws which provide for net metering. In other words, some states have laws in place which require the power company to buy your excess electricity, should you generate it through renewable energy sources.

You will probably not run into any problems with your energy companies, as most states have laws that demand a certain percentage of green power production. So net metering is convenient for them as well, and any green energy you produce can be counted on their quota.

Net metering is one of many good ways to save energy and money as well.  By using solar power and net metering, you reduce the need for polluting fossil fuels which harm the environment.

Net metering is not only good for the environment, but good for your bank account as well.


Find out more about how to save money with solar power.