Did you know that 3.2 million US homes have solar panels installed?
Solar panels are becoming popular as more people turn to renewable energy systems. With solar panels, homeowners can generate their electricity.
However, with solar panels comes the question of how to manage the excess energy generated. This is where net metering and net billing come into play.
In this article, we will discuss the pros and cons of net metering vs net billing. Read on to help you understand which option may be best suited for your needs.
Net Metering
Net metering is a system where homeowners with solar panels can sell their excess energy back to the grid. This excess energy is measured by a meter that records how much electricity is being sent back to the grid.
Pros of Net Metering
It offers advantages for homeowners equipped with solar panels. Here are some of the pros:
Saves Money
With net metering, homeowners can reduce their electricity bills. By selling their excess energy back to the grid, homeowners can earn credits. This can offset the cost of their electricity usage when they need it.
Simple Setup
It does not need any extra equipment or complex systems. It utilizes the existing electrical infrastructure. This makes it a simple and cost-effective option for solar panel owners.
Cons of Net Metering
While net metering offers several advantages, it also has some drawbacks. Here are some of the cons:
Time-based Compensation
Net metering only offers compensation based on the time of energy production. This means that homeowners may not receive credit for excess energy generated during peak hours.
Dependent on Utility Company
It is dependent on the utility company’s policies and regulations. A change in these policies could affect the benefits received by homeowners.
Net Billing
Net billing is a system where homeowners with solar panels are compensated for excess energy at a fixed rate. They receive a check from the utility company for any excess energy generated.
Pros of Net Billing
Net billing also offers several advantages for homeowners. Here are some of the pros:
Fixed Compensation
Unlike net metering, net billing offers fixed compensation for excess energy generated. This means that homeowners do not have to worry about time-based compensation.
No Dependence on Utility Company
With net billing, homeowners are not dependent on the utility company’s policies and regulations. The fixed compensation is determined by the state or federal government.
Cons of Net Billing
Similar to this, net billing also has some disadvantages. Here are some of the cons:
Higher Setup Costs
Net billing requires additional equipment, such as a separate meter. This can increase the upfront costs for homeowners.
Limited Savings
As net billing offers fixed compensation, homeowners may not be able to save as much on their electricity bills compared to net metering. This may not be as financially beneficial in the long run.
Whatever option you choose, make sure to have your solar panels installed by a certified and reputable company. You check Semper Solaris Roofing to help you with your solar panel needs.
Understanding Net Metering vs Net Billing
Net metering vs net billing is a debate that continues to divide opinions. Both options have their advantages and disadvantages. They offer potential savings on electricity bills for homeowners with solar panels.
It’s essential to research and understand the policies and regulations in your state before making a decision. The choice between the two depends on your specific needs and circumstances as a solar panel owner.
If you’d like to learn more, check out more articles on our blog.
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