How Net-Metering and Solar Work Together to Save You Money

How Net-Metering and Solar Work Together to Save You Money

Net-metering kansas city

We all want to save money on our energy bills. Most of us also want to do right by the environment. Switching to a different source for energy in our homes and businesses can make a big difference in both of these areas.

Net-metering can also help you save money when you use a renewable source for your energy. It is a simple way of using energy and getting a rebate.

What is Net-Metering?

Net-metering is a mechanism for your electric bill that allows people who use solar energy to access stored energy. There is a law that requires your electric company to buy the extra energy produced.

For those who use renewable resources, once your home has absorbed as much of the energy it needs, the electric company can store the rest. Then, when you need it later, it is available from the main grid.

When your home needs power, after the sun has gone down, it can draw energy from the power grid, as it the normal practice. The power company is like your own storage closet, holding on to the energy you already produced.

The power company is required to buy the excess energy you and others produce, so it will be available when the community needs it. They pay for the energy you produce and then pass the savings back to those who generated it.

The Benefits of Net-Metering

Although your home doesn’t need all the power that is generated while the sun is out, it still generates power to its full capacity. The power company pays you for the extra, and it becomes available to you when you need it.

You also benefit from generating power by way of a credit on your bill. So when they buy electricity from you, they simply credit your monthly bill for it. This also means your power bills will be low for the duration of your time in that home. The rebates or credits each month will actually help pay for your solar energy system.


If you act now, you will also be eligible for a tax credit for 26% of your solar power system in 2020. However, the government is willing to let this expire and it will actually be less next year, in 2021 and then, depending on the government, set to expire altogether.

While the actual policies may vary from state to state, as a rule, net-metering laws involve monthly roll over of kWh credits. There may also be a small monthly connection fee, it may require a monthly payment of any outstanding debts from your previous electric bill and any annual settlement of any residual credit.

Net-metering is an enabling policy designed to foster private investment in renewable energy. Rather than have your regular meter running and adding up costs on a continuum, with net-metering, the opposite happens.

Renewable Resources

Once your home or business is producing more than it needs, it is fed back to the grid. If you find yourself short some days, you can simply access stored energy from the grid.

With your regular power provider, your bills will continue to go up every single year for the rest of your life. With net-metering, you are actually contributing to the power source with your solar panels and generating power for you and your community.

Sharing power that comes from a renewable source is helping you save money, helping the planet and helping your entire community. If you’re ready to install solar panels on your house contact us today!