Net metering is an amazing green money machine

I haven’t met anyone who doesn’t like the idea of making extra money. It gets even better if there is no labour required to obtain this money. Net metering is just that. It is a way of making some money while you sit in your lazy chair, or wherever you prefer to sit. On top of that, net metering is a step in the right direction towards saving the planet. Do you want to be a hero and get paid for it? Then keep reading and find out about net metering.

What is net metering?

Net metering, in short, is the process of selling excess electricity generated by solar panels to the electric companies. When you have a solar installation at home, you generate electricity all day, every day. Even on rainy days, there will be some power created, albeit not too much. If you happen to produce more than that you consume, your power will be given to the grid. Depending on where you live, if you have lots of sun or not, this can be a rather large amount of electricity. Obviously, this also depends on how much you consume yourself. But with good solar panels and a normal consumption pattern, it is likely that you will build up a surplus.

Now, electricity providers don’t like to spend money, they are in it to make money. So a lot of them, especially in the US, won’t actually pay you money for your electricity. Then how is net metering a green money machine? You will get paid in kWh instead of dollars. This means you get a discount on the electricity you consume off the grid. Meaning, if you produce enough to lower your grid consumption and send some their way, your electricity bills will be negligible from the moment you start using your solar panels. Not having to pay your electric bill can save you thousands.

Even when you’re not directly paid hard cash for the electricity you sell via net metering, you’ll be making money by saving on utility bills. And this process goes on for the rest of your life! Unless, of course, you move to another house without solar panels.

There are other systems that are becoming more and more popular. Feed-in Tariff (FiT) is gaining a lot of popularity. This is the same process as described above, but instead of being paid in electricity, you actually get paid in real money. You can see why this is becoming more and more popular, as it is always nice to see real money coming in. However, FiT is still far from common in the United States, so most American solar energy geeks will need to make their money via net metering.

What are the benefits of net metering

What we know at this point is, that with net metering, homeowners who generate more electricity than they need from solar panels or other renewable sources can sell the surplus back to the utility company. Let’s look at some advantages that go along with net metering.

The use of renewable energy sources like solar and wind is promoted by net metering is clearly one of its main benefits. By doing so, we can use less of the finite and climate-altering fuel known as fossil fuels. Net metering aids the switch to a greener, more sustainable energy system by incentivizing the use of renewable sources of power.

Homeowners who generate their own electricity may further see a decrease in their monthly power bill thanks to net metering. Investment in renewable energy technologies, which can be costly initially but offer long-term savings, may become more feasible for individuals as a result.

Households are also encouraged to make investments in renewable energy and other green technologies through net metering. With the incentive of credits for any surplus energy generated, homeowners are more likely to make their homes more energy efficient and reduce their energy use overall (find out more under the header “Powering up the green money machine”).

Finally, net metering contributes to a more reliable and distributed power grid. Net metering promotes a more distributed energy system that is less susceptible to disruptions or outages by allowing homeowners to feed excess energy back into the grid. Both individual homeowners and society as a whole can benefit from this because it increases the grid’s reliability and stability.

Is net metering fair?

You may have heard stories claiming that net metering isn’t fair. That it is a selfish way of manipulating the electricity market. These messages are spread by utility companies, you might be able to guess why. Their argument is that it is unfair for consumers that don’t have any solar installation at home. Supposedly, their electricity bills will go up if people start using net metering. That would be unfair, right? Why would people that don’t have solar panels have to pay more for their electricity? Luckily, these companies seem to have the solution. They think you should stop the net metering. That way, you help your community, but do you?

In fact, that is all untrue. The only ones you’d be helping is the big electricity companies, as you will be consuming more of their product. Offering your solar energy to the grid even has the opposite effect. Net metering will make electricity cheaper for everyone. By sending your excess electricity to the grid, you help provide power when it’s most needed. During peak demand, prices could drastically spike. Net metering prevents that from happening. So the simple answer to the question is that net metering is more than fair, for everyone.

The impact of net metering on renewable energy adoption & utility companies

Both renewable energy developers and utility providers have benefited greatly from the widespread implementation of net metering laws. With net metering, homes and companies that invest in solar panels or similar renewable energy systems are able to earn credits for the energy they generate but do not use.

Net metering’s capacity to make renewable energy systems more cost-effective is one of its most far-reaching effects. Net metering rules can drastically cut the payback time for solar panels and other renewable energy systems by allowing households and businesses to earn credits for energy they generate in excess. This has pushed down the price of renewable energy systems, making them more affordable for a larger range of customers.

However, not all utility corporations have embraced the increased adoption of renewable energy sources made possible by net metering rules. The adoption of net metering rules can assist utilities in fulfilling state mandates for renewable energy while simultaneously posing a threat to the status quo of the utility industry. Utilities could have less money to invest in maintaining and expanding the electrical infrastructure if more customers began producing their own electricity.

Some states have revised their net metering policies in light of these worries. Some jurisdictions, for instance, have instituted set tariffs for grid access, while others have lowered the credit households and businesses receive for extra energy. The utility companies’ financial worries are being addressed together with the benefits of net metering in these revisions.

Powering up the green money machine even further

In the realm of renewable energy, solar devices have proven to be revolutionary; they not only provide us with clean and sustainable power, but also significantly lessen our reliance on fossil fuels. These devices have become an integral part of the net metering phenomenon, turning it into a fantastic green money machine for homeowners and businesses by harnessing the power of the sun.

A wide variety of technologies exist to collect solar energy and transform it into usable power. Solar water heaters, solar lights, or solar lanterns – all solar-powered appliances play important roles in fostering a greener tomorrow. Ecological worries and the prospect of bill savings thanks to net metering have contributed to their rapid spread.

Here a list of our favourite solar devices on the market: