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HOW DOES NET METERING WORK?
When utilities offer net metering for solar, they typically install specialized electric meters during the solar installation process. These meters enable the utility to monitor both the consumption and surplus energy fed back into the grid by a building. Referred to as bi-directional meters, they facilitate the tracking of energy flow in two directions.
In Kansas and Missouri, the majority of utilities allow the utilization of excess energy credits throughout the monthly billing cycle. However, any surplus credits remaining after this period are typically converted into a bill credit at a reduced rate, typically around 25% of the retail value. Consequently, it is essential to consider net metering policies when designing solar panels for residential or commercial properties.
IS NET METERING WORTH IT?
Net metering serves as a mechanism to incentivize solar energy production, offering a range of economic and environmental advantages. Moreover, it promotes solar adoption at individual electric meters, precisely where power demand is most critical.
Rooftop solar, often referred to as "distributed generation," disperses solar energy contributions across the grid from arrays distributed throughout, rather than from a single source like a power plant or large-scale utility project. Excess solar energy fed back into the grid is directed to nearby energy demands, typically benefiting the closest neighbors. This distributed generation enhances grid resilience, minimizing the risk of brownouts and blackouts.
Consequently, solar net metering benefits not only consumers but also entire communities by fortifying the electric grid. Numerous independent studies have assessed the economic costs and benefits of net metering, consistently demonstrating its value.
From a consumer standpoint, net metering proves advantageous as long as utility policies do not overly restrict the size of solar projects. For homeowners, a battery backup system can offer similar benefits to net metering; however, if batteries are incorporated into a solar project, net metering becomes unnecessary.
For homeowners with solar panels operating under less restrictive net metering policies, the practice delivers some of the advantages of a battery system without the expense of acquisition (though a battery backup system may still be desired for continuous power supply).