Can rooftop solar and net metering really free you from high electric bills? In areas where net metering is available, the answer is yes. Net metering is a process that slows your electric meter down or even spins it backwards when your solar power system generates excess power. A typical home solar power system generates more power than a home uses during the day. Under net metering schemes, that excess electricity is fed into the grid. The homeowner is then given credit for the value of that power. That credit will either reduce future bills or be paid directly to the homeowner.
Net metering
Net metering credits solar power system owners for the electricity they supply to the grid. Naturally, a rooftop solar power system doesn’t provide power at night, so the system owner gets electricity from the grid at night. The idea behind net metering is for the customer’s system to produce enough electricity during the day to cover the cost of the electricity used at night. The customer then pays the net difference between the amount of power they used and the power they generated. The goal of net metering is to produce as much power as you consume, or more.
Why can net metering reduce or eliminate your power bill?
Your solar power system naturally produces more power in the summer than it does in the winter. Because of that seasonal variation in power production, you can expect to produce more power than you need during the summer. Likewise, during the winter you will likely use more power than your system produces.
During months that your system produces more power than you consume, you will earn bill credits with your electric utility that “rollover” into later months. You accumulate credits during the spring and summer. Those credits are then gradually used to pay for the energy you use during the fall and winter. If you have any excess bill credits left over at the end of the year, the power company will send you a check for the amount of those credits. Thus, the goal is to try and eliminate your electric bill.