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How Net Metering Works — And Why It Matters

3/30/2025

Net metering is one of the biggest benefits of going solar. It’s a billing arrangement that credits you for the excess electricity your system produces and sends to the grid.

How It Works

When your solar panels produce more energy than you use (like during the day), the extra power flows into the grid. Your utility company gives you a credit.

Using Credits at Night

At night or on cloudy days, you use energy from the grid — and your credits offset that usage. This can significantly reduce your monthly bill.

Monthly vs Annual Reconciliation

Some utilities settle net metering monthly, others annually. Ask your provider or installer how credits are applied and whether unused credits expire.

Why It Matters

Net metering maximizes your savings by making sure no solar energy goes to waste. It's one of the most powerful tools for offsetting your energy costs.

Best Solar Companies Near Me helps you find installers who optimize your system for maximum net metering benefits.

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