Net Metering

In several states, the power company allows you to sell energy back to them along the same lines that they deliver power to you already. This is done by keeping track of the power in and power out and coming up with a net total – hence the name: Net Metering.

The effect of net metering to encourage solar panel use has been demonstrated in Germany, where there has been a huge spike in residential solar installations as a result of generous net metering laws. Since the government has decided it’s not as interested in upping the investment in wind power, the net metering that tracks wind generators in Germany pay out at the regular wind generated rate.

In the US and Canada, the net metering rates are set by the state or province and, even sometimes by the utility companies themselves. Since net metering made the news a few years ago, when the price of oil really started to go up, there have been some consumer friendly concessions made to ratepayers in nearly all of North America.

Pennsylvania is a good example. As early as 2004, the Pennsylvania Electric Cooperative (PECO) introduced legislation that allows their electric customers to choose between running the meter back when they produce an excess of their current consumption to be “used” later, or using a second meter to keep track of the energy you produce. This way, you don’t actually use any of your own electric, instead sending them a “raw material” and using the professionally conditioned current.

Of course, not all net metering systems and programs are crated equal. Some require you to buy power at the retail rate and sell it at the wholesale rate. Other provisions actually use net metering to charge those with photovoltaic cells extra. Check with your state or province energy department to see what the regulations and rates are. If you don’t like it, some well-written letters to the elected officials can have an impact.

If you install a renewable system that generates current you’ll have to decide if you want to use or store it all on site. Net metering gives you the advantage of having a meter rather than banks of storage batteries or a monstrous flywheel.

Generally speaking, North America has lagged behind in the implementation of a distributed network of renewable power generation, instead, favouring the construction of large renewable and nuclear plants. However, other industrialized nations have had great success in using these technologies in tandem to reduce their reliance upon fossil fuels and emit less atmosphere-clogging carbon.