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Answers to other net metering questions below.

 

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When you are buying electricity from a power supplying utility company and you also want to become an electricity producer to your home, you will need a net metering agreement with your utility company. This agreement will generally require that  you carry additional insurance, drop your electricity producing generators off the utility grid in a power outage and insure that your installation meets local codes, to name a few.

The Network for New Energy Choices grades net metering agreements between states and consumers. The annual report card grades these agreements from A-F so you can see how your state scores. Most states have agreements and the list is growing because of the governments push towards renewable energy.

Solar panels, wind generators and micro-hydro electricity generators are typical systems requiring net metering agreements for on the grid users. It feels empowering to produce your own electricity and get more independence. Essentially, when you net meter and generate excess electricity to the utility grid, you are storing electricity in the grid, kind of like you would be storing electricity in batteries, except without all the maintenance.

Once you have installed your solar panels, wind generator or micro-hydro generators and you have a net metering agreement with your utility company, they will install a net meter to record the net electricity consumed. With some agreements, you will not get cash back for excess electricity you generate, so it would not be cost effective to install too large a solar array or wind generator system. Only generate excess electricity if you get paid for it. It is very important for you to read and understand your net metering agreement before you install a generating system.

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