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How Does Net Metering Work?

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Category: Solar Research
November 9th, 2023

What is solar net metering, and are you making the most out of your solar array? As homeowners and business owners delve into the world of solar panel installations, the concept of solar net metering becomes a crucial consideration.

It’s not just about producing solar energy; it’s about optimizing its use, ensuring that you’re not leaving potential savings on the table. In this exploration, we unravel the mysteries behind solar net metering and how it can revolutionize the way you harness and benefit from solar power in Texas.

How Does Net Metering Work?

Picture this: your residential solar energy system is a powerhouse, peaking in production during different parts of the day based on the orientation of your solar panels. When your solar panels generate surplus energy, it flows back to the electric grid, spinning your meter in one direction. Conversely, during times of low or no solar production, you draw energy from the grid, spinning the meter in the opposite direction. 

Net metering, in essence, tallies up these movements, providing a comprehensive overview of the electricity flow. The result? A net reading that accounts for all kilowatt-hours (kWh) exchanged, paving the way for optimal energy efficiency.

Solar Net Metering in Texas: A Beacon of Opportunity

Texas, known for its vast energy landscape, is also a pioneer in solar net metering. In deregulated markets, homeowners can choose a retail electric provider (REP) that aligns with their solar goals. 

Opting for a ‘one-to-one’ solar-buyback plan with reputable REPs like Green Mountain Energy or Reliant Energy opens the door to a credit system. For every surplus kWh contributed to the grid, homeowners receive credits at the same rate they are charged for the electricity they consume. It’s akin to treating the local electric grid as a giant battery, allowing you to draw from or contribute to it as needed.

Full Offset System Design: A Radiant Solution

In the realm of residential solar energy design, the full offset system takes center stage. This strategic setup ensures that over a 12-month period, the energy contributed to the grid is roughly equivalent to the energy consumed. In simpler terms, a net of zero. This not only slashes your electric bill but provides an unbeatable return on investment by offering a complete alternative to paying higher electric rates.

Texas-Sized Net Metering Opportunities

While Texas’ net metering policies may be perceived as less generous than some other states, they still present significant savings for homeowners. The Public Utility Commission of Texas (PUCT) oversees these policies, making net metering available for systems of 100 kW or smaller. It’s a beacon of opportunity for homeowners keen on reducing their monthly energy bills and earning credits that offset future electricity costs.

Navigating the Solar Seas

As local solar installers operating in the Magnolia solar arena, in Texas, we’re passionate about educating homeowners on the benefits of solar installation and net metering programs. Beyond net metering, 

Texas offers additional incentives, such as the federal solar Investment Tax Credit (ITC) and various rebate programs. However, it’s crucial to partner with professional solar panel installers who understand the intricacies of net metering and can optimize your solar array to reap its full benefits.

Ready to embark on your solar journey and unlock the potential of net metering? Contact us at Sunshine Renewable Solutions for a free solar estimate. Let’s illuminate your path to solar efficiency and energy independence, one kilowatt-hour at a time!

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