Net metering and net billing for solar energy are crucial aspects for homeowners who are considering solar investments for their homes. Investment in solar panels is a hefty choice for homeowners. However, it also comes with many benefits, including net metering and net billing benefits. The excess energy produced by your home solar system can fetch financial benefits. In the following section, you will find a discussion on net metering vs net billing.
A Guide to Net Metering
Your solar system produces energy on sunny days, though the energy produced by the solar panels may turn out to be excessive in some cases. For example, you will find solar energy overproduction when you go on a family vacation for a few weeks. In most cases, solar energy overproduction happens in normal cases since the panels produce more energy than your household requirement.
When there is a grid-tied system, the excessively produced energy has been pushed out through the electricity meter to the utility grid. In exchange, you will get credit for the excessive solar power that has been sent to the grid. Typically, people get one-for-one credit for the excessive energy they produce.
So, what will you do with this credit? The accumulated credit can be used for energy consumption from the grid. For example, your solar panels may not produce electricity when the weather is overcast for a week or more. In such cases, you can use free energy from the accumulated energy credits. The process ultimately helps you save money on your emergency electricity needs.
Understanding the Net Billing
Although net billing also deals with overproduced solar energy, there are some fundamental differences between net metering and net billing. In the case of net billing, you can sell the excess energy to the utility companies. In such cases, you earn in dollars instead of earning the credits, which can be used to pay the utility bills later. Another crucial thing is that utility companies may offer a lower price for your excess energy than the actual energy cost per unit.
Availability of Net Metering and Billing in US States
The availability of both net metering and net billing varies according to the states and utility companies. The majority of the states in the USA mandate utility companies to offer net metering facilities to homeowners using solar power. Texas is the only exception in this regard, as the state does not have any mandate for utility companies to offer net metering facilities. However, there are some utility companies in Texas, offering this facility to homeowners. Read our blog to learn more about Texas solar tax credits, rebates, and grants.
Conclusion
The conclusion that can be drawn from the comparison above is that net metering is more beneficial and convenient for solar investors than net billing. Understanding solar tax credits and net metering can be complex. Hope this guide to net metering vs net billing will help you to decide the right option with precision.
Home Solution Pros can be your partner for home improvement. From different home solutions to installing solar panels to improve home efficiency, we offer a trusted service to our clients. Consult our team to understand the benefits and importance of net metering. Get in touch with us to explore the tax rebates and grants that you can leverage through home improve in your state.
