Solar energy is a reliable source of renewable energy. The benefits of solar power cannot be understated. It is clean and provides independence from power utility companies. A direct benefit to those who have installed solar panels is a reduction in the cost of power.
In some cases, solar-powered buildings do not pay any electric bills at the end of the month. Some even generate excess energy, which gets back to the main electric grid.
A lesser-known detail is the fact that solar-powered buildings help the community. This is possible via what is known as net metering.
Did you know that net metering helps the neighboring community, even those homes that depend on the main electricity grid for power?
We look at all the important details about solar net metering, how it can put money back into your pocket, and who else benefits from it.
What is Solar Net Metering?
If a solar-powered building generates surplus electricity, the excess power goes back to the utility company. Depending on the local laws, the utility company may be required to pay for this power.
Net metering, therefore, is a mechanism that allows commercial and domestic users who generate electricity via solar systems to export the excess power back to the main grid. Users who are on-grid are the ones who may benefit from net metering. On-grid means that your building is connected to the main electricity grid.
The net metering billing principle credits the solar power system owner for the energy they add to the grid. For on-grid users, if excess power is exported to the grid, your meter will run backward. This mechanism provides credit against the electricity utilized during the night or when the building uses exceeds what the solar power system generates.
On the other hand, the power generated by solar panels may not be enough to power a home or a commercial building. In this case, an on-grid customer will get power from the main grid to compensate for the power deficit. At the end of the month, the users will have to pay for the power they used from the utility company grid.
Although laws may differ from state to state, the main aim is to make renewable energy economical and accessible.
Ways in which Net Metering from Solar-Powered Buildings Benefits the Community
On-grid solar power systems are beneficial to both homeowners and their neighbors. Here is how solar net metering affects neighborhoods positively.
- Protects the grid: This means that there are fewer network and infrastructure upgrades on the grid. Using solar power not only helps conserve energy but helps power the grid. The excess electricity from the solar power systems gets back to the grid, which means utility companies require fewer funds on network upgrades. It aids in reducing congestion on the grid, limiting the likelihood of power blackouts and the need for repairs.
The non-solar utility consumers in the neighborhood get to utilize the excess power to meet their energy demands. This takes the pressure off the main power grid.
For instance, California’s electricity faces periodic challenges from heat stress and other issues; solar metering helps relieve some stress on the main electric grid.
- Energy consumers in the neighborhood save money: Consumers who use a lot of power in the community make savings on their monthly bills. The excess electricity generated by users with solar power systems serves the nearby loads of electricity requirements. It means that the states avoid firing up expensive gas generators to cater to power needs. This is especially common during peak hours. Power generated from standby generators is extremely expensive, and the cost is passed down to the end-user. It means that your monthly bill will be high.
- Safety for the community: Climate change and age is affecting the main electric grid. Currently, we have weather patterns that pose serious challenges to the grid, including more aggressive storms and hotter summers. Other threats to the current electric grid include cyberattacks. It, therefore, means that additional stress to the electric grid will overburden it. Sources quote the cost of upgrading the current power grid to run into trillions of dollars. Having various energy sources, especially localized solar power systems saves the community from worrying about catastrophic weather events or cyberattacks. Having more power options, including distributed solar power, makes the entire power supply system reliable.
Other Benefits for Neighbors of solar-powered Homeowners.
There are numerous benefits that the community enjoys apart from solar net metering. Some of these benefits include:
Environmentally friendly solution
Homeowners who possess solar power systems contribute to a friendly environment because their systems do not generate any toxic emissions or pollutants. Without solar power systems, communities may depend on fossil fuels or fracking, resulting in pollution.
Eliminating environmental pollution guarantees families avoid health conditions resulting from pollutants. This, in turn, saves money in the community. It has been conclusively proven that using renewable energy sources such as sunshine greatly reduces the carbon footprint, contributing positively to reversing climate change.
Relieving the Load on the Electric Grid
Users who generate solar energy assist in relieving pressure off the utility grid by sustainably generating energy. This power comes in handy, especially during peak consumption times.
Additionally, all homes that generate energy using solar means reducing power generation from gas, coal, or other non-renewable sources.
Creating Jobs and Opportunities.
The solar energy industry continues to create more jobs and opportunities for communities. This is especially true for community engineers, electricians, and installers.
It also brings to the fore the opportunities solar energy solutions present. Therefore, the community benefits as a whole. As the solar energy industry continues to grow in leaps and bounds, we expect many more people to acquire the relevant skills to create a whole ecosystem with supporting structures.
Solar net metering is beneficial for users as well as the neighborhood. Users benefit from savings on utility bills, a shorter payback period for their solar power system, and avoiding the need to purchase energy storage solutions. On the other hand, the community benefits from having a less stressed grid and living in a pollution-free environment due to environmentally friendly ways of power generation. Communities get to save money on power and create more jobs.
Consequently, whether you have installed solar panels or not, you directly benefit if your neighbors do. Therefore, solar net metering is beneficial to everyone in the community.
