Solar Energy

Solar Energy: What is Net Metering?

By
Gexa Energy
April 26, 2023
|
3
minutes read
By
Gexa Energy
Publication Date:
September 12, 2023
Last updated:
September 12, 2023

What happens to solar power on rainy days or at night? Is it even possible to ensure that your home receives the electricity it needs when the weather isn’t cooperating?

Thankfully, there is a reliable solution called net metering. Net metering allows you to send any excess power from your solar system back to the grid. In return, you receive credits to use when you need to take some of that power back.

Keep reading to learn more about Texas net metering and how Gexa Energy could help you declare energy independence with solar energy.  

Related: Learn all about getting started with solar energy.  

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What Is Net Metering?

Net energy metering is a billing process that electric companies use to credit solar customers for the electricity they send to the grid.

Consider this net metering example: If you have rooftop solar in a mostly sunny area, your panels will likely generate more energy than you need. When you sign up for a net metering program, you can send this excess energy back to the grid in exchange for a credit. You can use the credit later to purchase power when your solar system doesn’t provide the energy you need, such as on a cloudy or rainy day or at night.  

The number of credits you receive is based on the net number of kilowatt-hours (kWh) you generate and give back to the grid in a given month.

Why Is It Called Net Metering?

Under a net metering solar policy, you are only billed for your “net” energy use; that is, the difference between how much excess electricity you sold and how much you actually used.

Related: Learn more about how solar panels work.  

Does Net Metering Work for Off-Grid Solar?

If you decide to use off-grid solar panels, you won’t be able to take advantage of net metering. This is because net metering is directly tied to the grid. In this circumstance, you would need to rely on solar backup batteries.

Why Do Net Metering Solar Plans Exist?

Net metering was designed to encourage consumers to switch to solar throughout the U.S., benefitting electricity consumers and utilities that provide power.  

The Benefits of Net Metering

Switching to a net metering solar plan can provide several potential advantages for homeowners, from financial to environmental. Let’s explore some main reasons to sign up for net metering.  

Offset Your Electric Expenses

The short answer is yes. Net energy metering allows you to receive credit for the excess energy you send back to the grid. These credits can help offset the cost of purchasing electricity from other resources, especially during peak periods of the year, like summer.  

With the right design and setup, your solar power system could produce enough power to provide all the electricity your home needs in a year, helping you save on your electricity bill.  

Clean Energy for the Environment and Economy

With net metering, Texas homeowners with solar power systems can generate their own electricity and contribute to eco-friendly goals and the renewable energy industry, which creates jobs and incomes for hundreds of thousands of people across the country. Today, the solar industry employs over 230,000 people, which will only continue to increase.  

Net Metering Benefits for Electricity Providers

Not only are net metering programs beneficial for utility customers, but they are also helpful for electricity companies. Net metering limits the strain on energy distribution systems and enables electricity providers to manage peak loads and ensure that every home and business receives the power it needs.  

Should I Switch to Solar Power?

Producing your own energy with solar panels could significantly reduce your electricity costs and allow you to harness an alternative source of energy. While the initial investment is significant, you can earn it back through tax credits, net metering, and reducing your need for electricity.  

Go Solar with Gexa

Gexa Energy has helped many Texas homeowners make the switch to solar. Learn if solar panels are the right solution for you based on your location and the amount of energy your house typically consumes. Switching to solar energy could be the next step in making your home more energy-efficient.  

Sign up for solar power with Gexa Energy today.   

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Gexa Energy purchases renewable energy credits (RECs) from renewable generation resources throughout North America to match 100% of the energy sold under your electric plan. The RECs Gexa purchases represent the renewable attributes of power generated from a variety of renewable energy sources, including, but not limited to, the sun, wind, geothermal, hydroelectric, wave or tidal energy, and biomass or biomass-based waste products, including landfill gas.