Depending on your area your utility company will have very specific guidelines as to how they view and exchange with solar customers. The vast majority of solar customers will still maintain a relationship with their utility company and it is very important to understand how that relationship works.
“Solar systems interact with the utility company everyday back feeding excess production into the grid…”
Solar systems interact with the utility company everyday back feeding excess production into the grid where it provides relief to demand and in ideal situations creates for solar system owners credits that can used at night and times of the year when their solar production is not at it’s peak.
Solar systems of course convert energy from the sun into usable power for your home and require sun hours to accomplish this. Because the sun doesn’t shine around the clock most solar systems are designed to overproduce during the day, storing excess production with the utility company where they can pull it back in the evening or at other times when those kilowatt hours (kWh) are needed.
“This exchange and the rates in which kilowatt hours are transferred back and forth is relationship called NET Metering.”
This exchange and the rates in which kilowatt hours are transferred back and forth is relationship called NET Metering. Understanding these exchange rates which are unique to each utility company are key to properly designing your system.
In many areas the exchange rate is equal so 1 kWh “in” equals 1 kWh hour “out”. Other areas may offer 9/10’s of that kWh in return. Others perhaps even less. As we lose value in this exchange we have to up-size our system for the increased production to absorb those loses which of course play a role in the economics of going solar.
“It is super important for those considering the transition to solar to understand their utility companies NET Metering policy…”
It is super important for those considering the transition to solar to understand their utility companies NET Metering policy as well as other requirements relevant to solar customers including system size limitations and rate plans available to solar customers.
Solstice Energy focuses tremendous effort on understanding these policies and educating our Energy Specialists on these nuances so home owners making the solar transition with us, can do so while capturing the greatest benefits.
NET Metering policy and other important information related to how your utility company views and manages solar customers can likely be found on their website or through a basic google search. It also doesn’t hurt to call your utility company before making the transition and get their thoughts before taking the leap.
We hope this article has helped you better understand what you’ll want to research and understand. If you’d like to take your understanding to the next level by speaking with an Energy Specialist, we welcome your contact anytime and have specialists standing by to assist.