What Does "Net Metering" Mean?

The basic idea for a home solar electric system is this:  You put solar panels on your roof; they collect the sun’s energy and produce electricity that is pumped back into the electric company’s power grid (after conversion by an "inverter").  The electric company buys this excess electricity during the day from you.  At night when the sun is down, you buy electricity from the utility company.  In a way, it’s kind of like banking electricity with the utility company during the day that you can use at a later time when the sun is not out or when you need more electricity than your solar power system is producing.  You generally pump power out to the electric company’s grid during day and get it back at night.  It’s kind of like storing water in a reservoir that you can use later. 

In the end, you just pay for the “Net” amount of electricity that you use over the course of a year.  “Net” just means the amount of electricity you use minus the amount that your solar panels generate.  This is a quick definition of Net Metering. 

Robert Morse
BSEE, MSEE
SunCal Solar, Incorporated
www.SunCalSolar.com

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