Most homeowners are interested in saving money when they can. One of the ways to reduce electric service costs is to harness the power of the sun. In addition to being better for the environment, households that run on solar technology can reap benefits from a process called net metering. Here’s a closer look at it.

What Is Net Metering?

Simply put, net metering is a billing mechanism that allows consumers to put their excess power back into the grid. Homes and businesses that have solar power systems installed on their properties may generate more electricity than they can consume. Rather than waste such energy, it becomes part of the power system in exchange for credits. This can be used to offset energy consumption and lower your energy bill.

How It Works

A solar energy system generates the most power during the day. However, it’s also the time when your home uses it the least. The extra electricity output then flows to the transmission grid to be distributed to other nearby users.   

At night, when there’s no sunlight, your solar power system is unable to produce energy for your needs. This is the time when you need to draw power from an electric services provider, causing you to consume instead of produce. The net difference between your consumption and production is the amount you’ll pay at the end of the billing period. For warm seasons when the days are longer, expect your system to produce more power and if it is more than you use the excess will be banked for later use or paid out in once a year.     

Why You Should Consider It for Your Home

Net metering offers multiple benefits to you and the community. By generating your power from a clean, renewable energy source, you significantly reduce your carbon footprint. And, though solar panels and their installation are a significant financial investment for most homeowners, over time, the system pays for itself with the money saved on electricity.

The merit of net metering extends to the community as well. Sharing excess output to other users minimizes the load on the transmission system and grid. There will be enough supply to meet demands during peak usage, reducing the risk of outages and distribution loss from your electric service provider. Moreover, net metering encourages investments and creates job opportunities for the solar power industry.      

If you want to know more about net metering, ask the experts at Jemez Mountains Electric Cooperative. Headquartered in Española, NM, the company provides affordable and reliable electricty to homes and businesses across Rio Arriba, Santa Fe, San Juan, McKinley, and Sandoval counties. Learn more about this electric cooperative online or call (505) 753-2105 to speak to a representative about your energy-saving options.