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Net Metering: A Win-Win Situation
by Chuck Hall

If you install your own energy production facility in your home, you will probably need some sort of storage medium for times when your power needs are greater (i.e., days when the sun doesn’t shine or the wind doesn’t blow). A lot of solar and wind power generating systems use batteries for this purpose, but another alternative is to connect your system to the local power grid. By doing so, you are actually using the power grid as a storage medium. If you use the local power grid in this manner, your public utility might actually have to buy your surplus power from you!

 The process of selling your surplus power to a utility company is called ‘net metering.’ In net metering, equipment installed on your connection to the power grid measures the net difference between the power you use and the power you produce. If you use more power than you produce, you are billed for the difference. If, however, you produce more power than you use, the utility company will actually owe you money.

Net metering works off of a regular power meter. When you are using power from the grid, the meter adds it up as if you were a regular customer. When you are producing more power than you are using, the meter turns backwards, subtracting from your total power usage. In most cases, to make use of net metering all you need is a properly installed power meter. If you were a regular power customer before installing your system, you may already have a power meter that will work. If not, you’ll have to purchase one at your own expense.

Before connecting to your utility’s power grid, you will have to undergo an inspection to assure the utility company that your equipment is up to code. They naturally don’t want to risk any liability for any improperly installed equipment. Once you have passed this inspection, you should be ready to connect to the grid.

While not all utility companies universally offer it, most will offer some variation of net metering because it’s a win-win situation for both the power company and the customer. The power company gets a source of power that it didn’t have to purchase new equipment for, and you, the customer, gain a place to store your surplus energy without having to go to the considerable expense of purchasing a battery storage unit. This savings might even allow you to purchase even more solar panels or wind generators, thereby allowing you to sell even more energy to your local utility.

If net metering sounds like an option you would be interested in, check with your local utility company to see what options they offer. If they are one of the few public utilities that don’t offer this valuable service, ask them why not.

Chuck Hall is a Sustainability Consultant and author. His latest book, Green Circles: A Sustainable Journey from the Cradle to the Grave, is now available at the Culture Artist Web site at www.cultureartist.org. You may contact Chuck by email at: chuck@cultureartist.org.