To the extent that utilities reduce or eliminate net metering programs they encourage solar power system owners to.
Solar panels without net metering.
Lets us consider different scenario s and you shall understand why such bidirectional net meter is important.
Without it you would need to install a solar battery to store your excess electricity which can run you thousands of dollars.
When your utility offers net metering it allows you to use the grid as a virtual battery to store the economic value of your excess solar power.
Net metering has become an important mechanism for the solar industry.
In most cases staying connected to the electric grid is your best option while home solar battery systems can account for hour by hour variations in solar electricity.
Net metering also ensures that you get the most out of your solar panels.
Net metering just means the poco has to pay you for any power you generate.
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As a result most home installations in texas are sized much smaller than elsewhere.
Big national installation companies like solarcity and sunrun make a huge deal out of the importance of retail rate net metering.
You can do all of these for a lot less expenditure than the net metering expense.
Net energy metering nem is a program most utilities offer which allows you to send extra energy generated by your home s solar panels back to the grid for a credit which will be applied to your future electricity bills.
Even without it you will still be able to reduce your bill by not needing to purchase all of the power from the poco because you generate some yourself.
Alternatively you could opt to store that excess electricity in a battery.
The answer is a big no.
Without net metering it doesn t make financial sense for your system to generate that you don t use yourself since you aren t credited for it.
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Solar is growing even without net metering.
In the state of hawaii solar power has been running for almost 4 years without the net metering program that was supported by hawaiian electric.
With nem billing you only pay your utility for this net energy usage.
In essence net metering is like having the grid serve as a giant solar battery.
Case 1 a.
Any solar electricity not used as it is produced must be exported to the utility power grid or stored in batteries for overnight or other subsequent use.
If you install an energy storage system to take your home off the grid you won t have access to the benefits of net metering.
All that means is it will take longer to pay back the installed cost of your pv system.
However it is not indispensable.
Otherwise your excess power would just get sent to the grid without you getting any value from it.
If a state fails to make retail rate net metering mandatory those big solar companies typically don t set up shop there.