Solar energy is a clean, renewable resource that enables users to transform natural light from the sun into AC/DC current electricity that can power homes; providing an alternative to the reliance on traditional fossil fuels.
Photovoltaic, or PV solar energy systems are made of 5 basic components:
Inverter
Electrical Panel
Utility Meter
Utility Grid
Making It All Work
While You Are Sleeping
Net metering is one of the hottest topics for utilities today because of the way rates are currently set up in many states, net metering can be a massive subsidy for solar panel owners.
How Net-Metering Works
If your solar power system produces less electricity than you need or if you need energy when the sun isn’t shining at all, that power is automatically supplied from the utility grid. If your solar power system produces more electricity than you need, the extra electricity gets delivered back to the utility grid.
For those who reside in a state that utilizes net-metering, homeowners get credited for the electricity delivered back to the grid at the same retail price paid for the electricity used by the grid. The language related to net-metering can be confusing and isn’t consistent among states where allowed.