Net metering can also be called “net energy metering” or “NEM”. No matter what term you use, it refers to a billing program used by your utility company.
This type of utility rate program is what requires your local electric company to purchase the extra solar energy your solar panels produce.
How Does Net Metering Work?
When your home or business’ solar energy system produces an excess of energy, it is sent to your local utility company’s power grid.
Your local utility company is required to pay you for that energy at the standard retail rate of electricity in your area.
Net Metering In Indiana
Different states have different programs for net metering. In Indiana, Senate Bill 309 passed in 2017, taking effect in 2018. The bill sets out a timeline of phasing out mandated medium benefits:
- If your solar energy system was installed before January 1, 2018 you will receive the original net metering benefits of selling excess energy back to local utility companies through 2047.
- If your system was installed before January 1, 2023 you’ll receive the original benefits through 2032.
All solar energy systems in Indiana that are installed after January 1, 2023, will receive wholesale value net metering policies.
In order to get the best savings, consider moving to solar energy sooner rather than later!
Solar Energy System Options
There are several types of solar energy systems available, most of which will offer a net metering option. If you decide to use a grid-tied system, with or without a battery backup, your excess solar energy can be sold back to your local utility company.
What To Expect On Your Utility Bill
Most people prefer to use a grid-tied solar energy system option rather than going completely independent from their local utility power grid. That means you won’t completely eliminate your utility bill, but you will drastically reduce your bill each month.
When your home or business is using a net-metered system you’ll notice your meter will run backward, providing you with a credit. You’ll only be billed for your “net” use of energy.
All the energy your system produces and doesn’t use will get put back into the utility grid for others to use.
With the right type of solar energy system, you will be able to generate enough power to meet your electricity needs without having to rely on your local utility power grid.
Advanced Solar Is Here To Help
Have questions about net metering and the best way to make the switch to solar energy in your home or business? We’re here to answer your questions and help you find the best solution!