Installing a solar power system can result in a significant reduction of overall bill amounts.
A solar power system harnesses energy from sunlight via solar panels on the roof and converts it into electricity. Generating electricity in this way is considered environmentally friendly as it produces no direct greenhouse gas emissions.
With a net metered solar power system, the electricity that is generated is used by the home or business, and any excess electricity (where the solar power system is generating more than is being used in the home or business at any point in time) is fed back into the electricity grid.
With a gross metered solar power system, all the electricity that is generated is fed back into the electricity grid.
Customers with either a net or gross metered solar power system are paid for the excess electricity that is fed back into the grid in the form of solar feed-in credit on their electricity bills.
So a net metered solar power system reduces the amount of electricity that homes and businesses need to buy for use during the day. Plus, the feed-in credits for solar electricity not used by the home or business and fed into the grid helps off-set the cost of electricity that is purchased from the grid.
With a gross metered solar power system all the solar electricity generated is fed into the grid, for which the home or business will receive feed-in credits, but all the electricity used by the home or business is drawn from the grid and paid for under the customer’s energy plan.
Solar feed-in tariffs, which are used to calculate solar feed-in bill credits, differ from state to state and may depend on when a solar feed-in agreement was entered into and the type of metering that is set up.
The amount of any solar feed-in credits received will depend on geographical location, the size of the solar power system installed and, in the case of net metered systems, the energy usage of the home or business at the time the solar power system is generating electricity.
Installing a solar power system can reduce the size of electricity bills, and can significantly do so depending on size of the particular system installed.