Net-Metering For Beginners

Today, alternative forms of energy — from solar to wind power — are beginning to make significant strides and impacts on America’s energy economy. As cost continue to decline and barriers of entry for alternative energy markets rapidly erode, accessibility to solar, wind and other forms of clean and alternative energies will become widely available and within reach for  many of America’s homeowners, small businesses and energy utility companies. The United States in the coming years will have tremendous opportunities — given the ever-declining cost of energy — to fully embrace the potential and power of alternative energy sources. That’s why policy leaders on the local, state and national level continue to discuss legislative solutions and policies to support and bolster an-already burgeoning clean energy economy in the U.S.


Given these realities, it is important to know of the mechanisms in place and benefits available for Americans who choose to invest in clean energy sources and infrastructure. That is where the concept of net metering comes into play.


Net metering is a system in which solar or other forms of alternative energy generation are connected to a public-utility power grid — usually the public-utility power grid which has traditionally served as a source for energy consumption — and in which surplus power generated from solar or other various alternative forms of energy are transferred onto the grid, allowing for an offset in cost for power drawn from said public-utility power grid at times of optimal power usage. To further simplify this concept, here’s a gif by EnergySage to illustrate net metering in action:

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When it comes time to invest in solar or other forms of alternative energy sources, it would be wise to call your respective public-utility energy provider to learn of programs and credit systems available for properties with energy generation capacities.