Net metering is a policy that allows people who generate their own electricity from solar panels or other renewable energy sources to feed any excess electricity they produce back into the grid and receive a credit for it on their utility bill. This allows them to offset the cost of the electricity they use when they draw power from the grid at other times, effectively “netting out” their usage.
Net metering policies vary by location, but in general, they require utilities to credit customers at the retail rate for the excess electricity they generate. This means that customers receive the same rate for the excess electricity they produce as they would pay for the electricity they consume, which can make it financially viable for people to invest in renewable energy systems.
Net metering has been an important policy in promoting the adoption of rooftop solar and other distributed renewable energy systems, as it allows homeowners and businesses to generate their own electricity and contribute to a more resilient and decentralized energy system.
Also, Check your PESCO bill.
Impact Of Net Metering On Society
Net metering has several potential impacts on society, including
Encouraging the adoption of renewable energy
Net metering can provide a financial incentive for people to install solar panels or other renewable energy systems, as it allows them to offset the cost of the electricity they use when they draw power from the grid at other times.
Promoting energy independence
By generating their own electricity, people can become less reliant on traditional utilities and the centralized power grid, increasing their energy independence and resilience.
Reducing greenhouse gas emissions
Renewable energy systems generate electricity with lower greenhouse gas emissions than fossil fuel-based power plants. By encouraging the adoption of renewable energy, net metering can help reduce society’s greenhouse gas emissions and mitigate the impacts of climate change.
Creating local jobs
The installation and maintenance of renewable energy systems can create jobs in local communities, supporting the development of a local green economy.
Increasing grid stability
By allowing excess electricity to be fed back into the grid, net metering can help stabilize the grid and improve its resilience to power outages and other disruptions.
Overall, net metering can have a positive impact on society by encouraging the adoption of renewable energy, reducing greenhouse gas emissions, increasing energy independence and resilience, creating local jobs, and improving grid stability.