Solar net metering may sound new to someone who just tapped into making use of alternative energy resources. Surprisingly, even households who have been using solar energy for quite some time now don’t have an idea of how net metering works.
You might have heard this from a TV commercial or a social media ad. If it doesn’t ring a bell, the below guide will try to explain the essential things you need to know about the solar net metering connection.
What Is Solar Net Metering?
Net metering is an exclusive billing mechanism for those who make use of a specialised kind of solar panel system. Many states do offer this kind of billing system wherein a household receives credit for the amount of excess electricity generated by their solar panels back to the grid.
On the other hand, gross metering happens when a home’s solar panel system sends all generated electricity to the grid and consumes from it. Under this metering mechanism, it pays for all energy it receives from the solar panel and charges the household for full consumption.
How does it work?
Solar panel systems generate more electricity than what the household consumes during daylight hours. If you use a net metering system, you will only get billed for the net energy you used in the month and may receive credit for the excess electricity it sends back to the grid. Some houses do money-making sideline out of sending more power to the utility company’s network.
Businesses may opt for a different kind of plan. Contact a solar net metering company in your area and inquire about the details of their enterprise packages.
Benefits of Solar Net Metering?
Solar energy saves households more money compared to the traditional electric billing system. The upfront cost of the installation can be overwhelming, but the amount of savings in a year is enough to cover for it.
Solar net metering allows households to monetize from the amount of energy they generate for the grid. With this billing mechanism, a family won’t just minimize their monthly spending, but also make a living out of it. Talk about improving the benefits exponentially after availing for a solar net metering connection.
Contrary to claims that solar systems cause energy loss, a burden passed on to non-solar users; solar energy panels does the opposite. Solar power systems usually generate energy near the network’s grid, which minimizes and prevents loss during transmission. As such, this makes another benefit of using solar net metering.
Is Solar Net Metering available in your area?
Solar net metering is already available in different regions of Australia. But if you would like to know more about the specifics, contact a trustworthy electrical solutions company. They can provide accurate info about the installation, cost, and other important info you need.
FAQs about Solar Net Metering
As it sounds new to many households, solar net metering raises many questions. Below lists several frequently asked questions related to solar net metering.
Why is the feed-in tariff lower than what I usually pay?
Utility companies bear substantial costs when they generate, transfer, and sell electricity. Additional charges also occur when they take energy from a household so they can pass it on to others. Network, marketing, and customer service costs add up to the amount affecting the feed-in tariff.
What is the difference between rebates and tariffs?
People with solar homes often mix up rebates for tariffs and vice versa, but if they find time to read more about this online, they’ll see it’s not rocket science.
Rebate is a percentage of the sale you’ll get for the price of the solar system you purchased. In January 2017, it started 1/15th yearly rate decrease. It’s not yet too late to get solar, and even if the rebate is completely gone, the benefits of solar energy remain significant.
On the other hand, a tariff is the amount of money you receive for every unit of excess energy that goes back to the grid. Seven years ago, NSW residents enjoyed a 66c per kWh rate. As of 2017, the tariff rate decreased to 5c-12c per kWh, which is not that bad.
Is Smart Meter Dangerous?
No. Like any other electronic device used in households, smart meters do not pose a risk to health.
Any Disadvantages Of Solar Net Metering?
Solar net metering provides tons of benefits to any household when it comes to self-sustainability and cost. Moreover, solar energy is a truly renewable energy source that helps the environment and private economy in many ways.
There are a few setbacks to it compared to the traditional method of sourcing energy. One is privacy when it comes to collected data by smart metering technology. Another thing to worry about is the maintenance of the solar energy system. A household needs to consider these cons significantly, and be ready before delving into the world of solar panels.
Do solar panels and net metering increase a property’s value?
The increase in property value is proportional to the quantity and quality of solar panels in a home. A 5kW solar panel in a medium-sized home adds an estimated worth of AUD 43,212.37 to its value.
What are the usual mistakes of many homes when it comes to solar net metering?
There are plenty of wrong moves consumers do when buying solar for their homes.
1. Not getting quotes
Some solar panel companies would charge AUD 15,000 to AUD 20,000 for a simple solar system. This amount is too high as some legitimate and professional companies in the solar market would only charge you for AUD 6,000 to AUD 8,000 for a high-quality and complete installation.
There are solar companies that would offer a system for a meager price of AUD 2,500 to AUD 5,000. However, in exchange for this affordable price, you might be at risk of getting a sub-standard panel, a low-quality inverter, a rushed installation, and poor customer service.
2. Not asking questions
Apart from checking the price, you need to ask for the feedback of experts and those who tried different solar panel companies. Read solar panel reviews coming from unbiased blogs to know more about the performance of various providers in the market.
3. Incorrect sizing of their solar system
Some households would sign up for solar net metering connections with very little knowledge about it. The problem then arises when they need to decide about the solar panel that fits their needs, and they’re not sure about the amount of electricity they use.
It’s best to contact a professional team of solar system solutions to guide you throughout this transition.
Is solar energy worth it?
Yes. As a renewable source, switching to solar makes an environmentally friendly alternative, and at the same time, it’s cost-effective. Apart from saving money, a household can earn through rebates and feed-in tariffs. Indeed, a win-win choice for both mother earth and the private economy.