What is net metering and how can it save you money? Energy storage in Maryland explained
Switching to solar offers a host of benefits for homeowners and business owners: a smaller carbon footprint, less dependence on the grid, and more. However, the most important advantage is that it allows people to secure massive overall savings on their energy bills. This is all thanks to a simple concept: net metering.
Net metering is a type of energy storage program between solar customers and their local utility providers. We’re exploring how energy storage in Maryland works, and how net metering can save you money.
Net metering 101
In basic terms, net metering is a system of energy storage here in Maryland. Every day, your solar panels generate energy from the sun’s light, even when you’re not actively using your electricity. This means that you may end up with an excess amount of stored energy.
Most solar energy systems installed in the United States are still tied to the electric grid, unless your home is completely off the grid. So, when your solar panels generate more energy than your household consumes, the excess power is sent back to the power grid at your local utility company. When net metering is in place, the utility company is required to purchase the excess power that your solar panels have generated.
Here’s how it typically works:
- Solar energy production ramps up during the middle of the day, which is also when energy consumption is usually the lowest.
- At the end of the month, most solar households will have generated more energy than they consumed.
- The excess energy is exported to the local power grid.
- The utility company pays for the power by adding a credit to the homeowner’s monthly bill.
- These credits can then be used to offset electricity usage in the future.
How exactly does net metering put more money in your pocket?
Many people are taking advantage of solar energy storage in Maryland. Here are some of the ways that net metering can save you money:
Slashes your electricity bills
If your solar panels are appropriately sized based on your household’s power usage, you can essentially eliminate your monthly electricity costs (with the exception of fixed costs from your utility provider). This is because any net metering credits that you rack up will cancel out future grid usage. As long as you have enough energy stored, then you can say goodbye to a good chunk of your energy bills.
Eliminates the need for costly battery storage
Another benefit of net metering is that you can essentially use the grid as a battery. Without energy storage through the grid, you have to install a separate battery in order to store excess power. This can cost upward of a thousand dollars. Participating in net metering completely eliminates the cost and hassle of installing a battery.
Maryland utility companies purchase excess power at the full retail price
As mentioned above, the sunniest states aren’t necessarily the best for saving money through solar. The state’s net metering policies are also a major factor. Maryland has one of the most favorable net metering policies available and offers full-retail compensation for excess power.
Take advantage of energy storage in Maryland with solar
Solaris Solar Solutions is a leading provider of solar panel installation in Maryland. There’s never been a better time to go solar. Get started today by scheduling a free consultation with our solar experts.