The financial benefits of solar energy are well documented today. For most homeowners, solar power is critical because it eliminates or reduces the cost of power from the main grid.
In most cases, homeowners with larger solar PV systems installed do not pay much on utility bills. What’s more, homes with solar power help everyone in the community because the excess energy produced by the panels is distributed by the grid to the neighbors.
Now comes the following question: Does the community depend on the grid? This is possible via what is known as net metering. This post will delve into net metering and who really benefits from solar net metering.
What is Net Metering?
Many home users in the United States who are thinking of going solar have heard of “net metering”. However, not many understand what this really is.
Today, all solar systems are likely to be connected to the main grid, even if the system’s output is greater than the home’s need. This excess electricity output is channeled back to the power utility companies. A majority of states have enacted policies that regulate net metering. In other states, utility companies have set up programs for net metering.
When this excess power goes back to the utility company, the meter spins backward. It then means that the homeowner gets credit for the excess power generated from their solar panels. Simply put, net metering allows the surplus electricity generated from solar systems in homes and commercial buildings to be channeled to the grid.
Additionally, net metering allows homeowners who have solar power systems to generate their electricity cleanly and efficiently. During daylight hours, a majority of solar power systems produce more electricity than what is being consumed in the household. Net metering allows these households to export this excess power to the power grid while reducing their future power bills.
The advantage to a residential or commercial building owner is that the net metering billing system credits the solar power owners for the power they supply to the grid. Depending on local regulations, users may get credit to hedge against the electricity they use from the utility company. This normally happens during the night or when it’s not sunny. In most cases where users have surplus power from the solar panels, they end up paying nothing to the power companies while getting credit.
On the other hand, power users are billed for the net energy they use in their homes or commercial spaces. Users who have used part solar power generated by their systems and electricity from the grid have a “net” power usage. In this instance, users are billed for the net power supplied by the grid at the end of the month.
Users will notice their meters spinning forward when they draw power from the main grid. This normally happens at night or in the cold season. The concept of “net” powered used is utilized here. Excess power fed to the grid from solar panels vis a vis power from the grid.
How Net Metering from Solar-powered Homes Benefit the Neighborhood?
1. Saving Money for the Whole Neighborhood
The excess power produced by those who have installed solar systems typically serves local electricity loads. With this, consumers who use lots of electricity get to save on their monthly bills.
2. Reduction in the Necessity to Upgrade the Electricity Network
Solar energy helps conserve energy, ensuring more power is available on the grid for other consumers. More so, the excess energy generated by the solar systems gets back to the grid to power the neighbors. This reduces the need for power companies to spend extra funds upgrading their infrastructure.
However, some power utility companies view net metering policies as a potential loss in revenue. Contrary to this, net metering helps with determining a smoother demand curve for power. This helps the company manage its peak power loads efficiently.
Close range consumption of electricity prevents the loss of electricity during transmission and distribution. Looking at the overall picture, this saves a lot of money.
Additionally, net metering helps curb power outages due to transmission line congestion. At the same time, because the power lines are not burdened, power outages due to repairs and upgrades become less frequent.
3. Safer Operations
The power grid is not at its best due to aging. Year on year, there is additional stress on the power infrastructure due to stronger storms resulting from climate change. Threats from the hacking of power companies are not helping either. Updating the power infrastructure in the country will require billions to optimize and make it secure.
Expanding power sources to include on-grid and distributed solar energy sources makes for easier monitoring, operations and saves billions.
More Benefits for Neighbors of Solar-Powered Homes Other than Net Metering
Looking at it critically, residents located near solar-powered homes stand to benefit a lot. It is well known that power from solar energy is clean with zero toxic emissions. As a result, there is a reduced threat of pollutants from burning fossil fuel and fracking to provide energy needs. This reduced use of non-renewable ways of generating energy ensures a healthier environment for the families that live in the community.
Additionally, homeowners who rely on solar energy help reduce the reliance on our aging power infrastructure.
Moreover, this means that less power is generated from gas, oil, and coal. Solar power helps to diversify the power supply. It also means that the energy supply is sustainable, reliable, and consistent on cost.
Since solar power installation is local, it helps create jobs across the community. Net metering provides significant benefits to the economy in terms of savings, and investments. Essentially, with the increased uptake of solar power, jobs are easily created, for instance – solar power installers.
A solar energy ecosystem is therefore created consisting of solar-powered homeowners, installers, and engineers. This also raises community awareness on the adoption of cleaner energy sources and its benefits.
Conclusion
In summary, there is every reason to be excited if you look at roofs in your neighborhood and see solar panels. As much as the solar panels benefit the homeowner, there is clear evidence that the neighbors get lots of benefits as well. For starters, your air and water are cleaner; your electric company can operate better, and many other economic advantages are generated in the community from using solar.
