What is Solar Net Metering?
Solar Net Metering is a system that allows everyday households and businesses to use both solar power and stay connected to the existing electrical grid. Net Metering refers to the billing mechanism that electrical utility providers use to credit people who use a solar panel system. The owners of solar panels can connect their system to the grid and provide solar power for other users, in exchange for credits.
Many different countries around the world use Net Metering. Usually, customers will be paid for their solar energy at a rate that is close to what you pay for grid energy. In Australia, the surplus energy generated from your solar panels will be credited at the retail electricity price. Therefore, you will only pay for the difference in usage between your net energy consumption and surplus solar power production.
When installing a Net Metering system, remember that the energy absorbed into panels is first sent to your household or business. Then, the excess energy that isn’t required or isn’t being utilised is sent back to the grid.
How does Net Metering work?
For Net Metering, the electricity used in your household or business will primarily be generated from the sun, meaning the sun is the primary source of power to your television, air conditioning, microwave, and so on.
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Any excess gets fed back into the utility grid. However, if the weather is poor or you don’t get enough solar energy to meet your consumption, you can subsidise with grid power. The grid will provide stored energy back to meet your current electrical needs.
Excess power will be stored in your grid for future purposes. To prevent wasted solar electricity, a feed-in surcharge will only get applied to the amount that your household or business consumes, not the energy sent back to the grid. It’s a cost-effective and eco-friendly solution.
Benefits of Net Metering
There are many benefits to net metering for business owners, individual homeowners and the environment. These include:
- Reducing energy bills
- Powering more than one building
- Reducing your carbon footprint
What is Gross Metering?
When energy is generated by the solar panels on the roof of your property, it’s sent directly to the electricity grid where it will be available for use by anyone connected to the grid. Your property will then draw energy directly from the grid when it needs power. Gross metering is measured with two separate meters, one measuring the energy that is fed into the grid and the other measures the energy used by your property. This makes it easier to assess what energy comes in and what is going out.
What are Off-grid Solar Systems?
Off-grid solar systems or stand-alone solar systems are designed to provide electrical energy where grid power is unavailable. An off-grid system consists of solar panels, a solar battery to store and supply power, an inverter to control input and output of generated power and a backup generator, if required.
Modern off-grid systems offer online automation and monitoring, providing you complete control over the energy produced and will also store excess energy in solar batteries. The technology for off-grid solar and solar battery systems is constantly improving.
Energy efficiency and cost-effectiveness go hand in hand and it’s necessary to explore ways to reduce our reliance on the grid for electricity. It’s important to look at all your options and if possible, consider solar as a viable one.
If you are considering implementing a solar solution at your business, we recommend speaking with a Solar specialist who will advise you on the appropriate solution and any incentives that you may be eligible for.
Having solar integrated into your system can affect your retailer options, as well as the types of plans that are available. So if your energy contract is due for renewal, now is a good time to investigate all your options, including solar.
Contact us today or book in and see if solar is an option for you.