What is Net Metering with Respect to Solar Photovoltaic (PV) Power?

You’re probably asking yourself: Sure, this "Solar Electricity" sounds great but how does it actually lower my electric bill?  Instead of buying 100% of your electricity from SDG&E, your solar electric panels produce part or all of your electricity, just as you would expect.  In the end, you end up buying less electricity and so have a lower bill.

However, many people are gone during the day when their solar panels are producing the most.  Instead of wasting this solar electricity, it is “pushed” back out to the electric power grid and the utility company buys electricity from you.  It can actually make your electric meter run backwards.

It’s beautiful in its simplicity.  Your electric meter does only one thing.  That is, measure how much electricity flows through it so the utility knows how much to bill you.  When you produce more electricity than you use and "push" electricity back to the grid, SDG&E is effectively buying electricity from you.

Staying connected to the electric grid is important because the utility company will provide electricity when the sun is not out.  It’s almost like you are “storing” energy on the utility grid for future use.  The utility company buys electricity from you during the day and you buy it back anytime you need it.

This is done through what the utility company calls, “Net Metering”.  Your electric meter measures how much electricity flows through it so the utility can bill you for the amount used.  Now what do you think would happen if you could "push" electricity back to the utility company.  You have probably guessed that the electric meter would run backwards.  That's what Net Metering is and that is what a solar electric system does when you produce more electricity than you are using.

This is important because Photovoltaic systems produce electricity only when the sun shines on them and they produce the most in the middle of the day.  This is a time when many people are not home and are not using much electricity.  So your electric meter runs backwards in this case, and allows you to effectively "store" electricity with your utility company for use when you are home.  The utility company buys electricity from you during the day and you buy it back when you need it. 

The amount of electricity is "netted" out every year starting on the first day your system is connected. In other words, the amount of electricity “generated” over one year is subtracted from the amount “used” over one year and you pay only for the "net" or remaining amount for that year.

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

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