Thursday, February 3, 2011

Residential Solar System Earns You Money with Net Metering

What is Net Metering? Briefly, it is an interconnection agreement between the utility company and the consumer producing solar electricity. It allows utility customers to offset some or all of the energy used with self produced solar energy through the Residential Solar System. The meter spins forward when the customer is drawing power from the grid and spins backward when energy is being sent back. This shows that excess electricity is produced by the customer.
The Energy Policy Act of 2005 requires all public utilities to make available upon request net metering to their customers. This agreement is now one of the most effective solar incentives for residential level adoption of the technology. Instead of you paying the grid, the utility company pays you for the electricity produced.

 Net metering is beneficial to both the customer and the utility grid for 2 reasons:

1.    1. This agreement allows the customer to “bank” or deposit with the grid excess electricity to offset consumption over a billing period. This allows the customer to use electricity at a different time that it is produced giving the customer more flexibility and enabling them to maximize the value of their production. If at the end of the year a surplus remains, then the customer is paid for the difference at retail price. 

2.    2. Net metering increases the energy in the power grid and is a welcome development to keep up with the increase in demand during peak power-use hours.

. To participate in the Net Metering Program, the customer must apply and receive approval from the utility company to have Residential Solar System interconnected with them. The company will outline the requirements for safe connection to the grid. The local energy office can supply the other requirements and the state laws concerning net metering in the area.

Author’s Box
Did you find the article useful? There are more in our Informative Solar Article page. Jacinto Demonteverde, Jr., the owner, is a strong advocate of solar power adoption. URL: He writes practical articles to keep established and prospective solar users well informed. You are welcome to republish or reprint this article free of charge provided the content remains unchanged including the Author’s Box. No permission is needed.


  1. Hey there! Thank you for sharing your thoughts about residential solar in your area. I'm glad to stop by your site and know more about residential solar. This is a good read. I will be looking forward to visit your page again and for your other posts as well.
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