Net Metering – What is it & How Does it Work?

by Nitin Dhingra on Feb 18, 2021 Home Improvement 228 Views


Solar energy has been well demanded everywhere, as the world is eyeing towards a greener, safer future. The best solar panels work by converting receiving sunlight into electricity. But when the amount of energy produced is more than your utility needs, the surplus will be sent to the utility grid for use by others. Remember though, this only works with a grid-connected PV system. This arrangement by utility companies is called Net Metering. Here’s more you should know.

Net Metering – An Overview:

Net metering is a mechanism that rewards solar energy users who supply excess power to the utility grid. Both residential and commercial users of solar panel systems will be eligible for the program. They’ll be receiving credits in exchange for the energy supplied, which is reflected on the bill. By the end of every month, the difference between the energy consumed by you and the energy sent to the grid will be calculated, and your utility bill will be adjusted accordingly. With Net metering, you will save hundreds of dollars every year.

How Does it Work?

A PV solar panel system connected to the grid is required for net metering. Get in touch with recognised solar companies in Sydney to have it installed and set up in your property. You will need a meter that accurately tracks the energy going in and out of your solar power system. This lets the utility company know how much you must be billed every month.

What are the Benefits of Net Metering?

The demand for solar energy has been surging, thanks to the many benefits that net metering provides.

-Net metering helps you make great financial savings. The amount of savings made will offset the initial costs spent on the best solar panels. As mentioned before, the credits you generate by supplying electricity brings your energy bills on diet.

-By distributing energy locally, you can help prevent energy loss that usually occurs during long range transmissions. Additionally, the demand for solar energy has also created more job opportunities in the industry. In a bid to save the planet, net metering was introduced by the government to motivate individuals and businesses to switch to this greener alternative of energy production

-With solar power and net metering, you become self-dependent when it comes to energy needs. A reliable PV system not just produces enough energy for your home, but also supply to the grid to meet other people’s demands. When you use a solar battery to store surplus energy, you get to use it for energy-demanding appliances at a convenient time. No more worries about the fluctuating time-of-use (TOU) rates charged by utility companies.

Benefit from net metering and enjoy great savings by opting for solar panels in Sydney today. Contact a solar panels supplier soon.

The author is working at one of the recognised solar companies offering solar panels in Sydney at great prices. He frequently writes articles on solar energy for his online readers. To know more, visit

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