What are the benefits of Net Metering?

Net Metering is a simple way to get the full value of the electricity you generate. For example, if you are a residential customer, you may not be home during the day when your system generates electricity. Net Metering allows you to "store" this excess electricity on the grid, reducing or offsetting the electricity you would otherwise have to purchase.

Another benefit of Net Metering is the "baseline" rate you are charged for the net electricity you consume. The baseline is a given amount of electricity for your home or business; you are charged a lower rate for each kilowatt-hour of electricity you consume below the baseline, and a higher rate above it. If your system is sized to offset most of your electricity needs, you are charged a lower rate for the minimal electricity you purchase from your utility if your annual net consumption falls at or below baseline.

Net Metering offers additional benefits, depending on the size of your generating system. If you purchase a smaller, less expensive system, you can still offset most or all of your electricity needs because of the higher value of your excess electricity. If you purchase a larger system, you can "bank" or store your excess electricity on the grid and offset all of the electricity you would otherwise purchase from your utility or ESP.


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