Sometimes your solar panels will produce more electricity than you are using. The utility company will keep track of how much extra electricity you put into the grid, and give you credits for it.
There are two types of net metering: annual and monthly
When calculating they payoff of your solar system, whether your utility is net metered annually or monthly will affect how the system pays for itself.
With annual net metering, the credits you earn for the extra electricity you generate are calculated over the course of a whole year. At the end of the year, you might get a refund or credit on your electricity bill. Which means when you produce a lot of excess solar during the summer months that will help to cover what you use through the winter.
With monthly net metering, the credits are calculated every month. If you have more credits than you used from the grid in a particular month, you might get a credit or a check for the current month's bill . This means you typically wont want to size a system to cover all your annual usage if you have monthly net metering.
So, whether you have annual or monthly net metering, it's a way for you to earn credits for the extra electricity your solar panels produce. It helps you save money and make the most out of your solar power system.
For more information on net metering click here.
Don't care about the electrical grid? Next Step Energy also specializes in batteries and Off Grid solar systems.