solar-panel-cost-efficiency | April 16, 2024
If you’re considering using renewable energy to power your life or know of people currently self-sufficient for their energy requirements, you may have heard of cost savings and the term ’net metering’ come up in conversations. Since the term isn’t exactly self-explanatory, we’re here to break it down for you.
What Is Net Metering?
Net metering is a system in which solar panels or other renewable energy generators are connected to a public utility power grid, and surplus power is transferred onto the grid, allowing customers to offset the cost of power drawn from the utility.
It is a program designed for people who generate electricity for personal use. It lets you power your residence or business with renewable energy while allowing you to rely on your utility provider’s (BC Hydro or Fortis BC) grid if you need it.
How does it work?
When you generate more electricity than you need, the surplus energy gets fed back into the utility provider’s grid, and you receive a generation credit towards your future electricity use. When you don't generate enough to meet your needs, you buy it from your utility company. If you still have remaining credits from surplus energy at the end of the year, you get paid for it at market rates.
-
Solar panels convert energy from the sun into direct current (DC) electricity.
-
Inverters convert the DC electricity into alternating current (AC) electricity, which is what your home or business and utility providers' distribution systems use.
-
Your system generates electricity first, which powers your home or business, and then the excess is sent to the main distribution grid.
-
You’ll use a meter with two displays: one to show the kilowatt hours (kWh) delivered to your home or business and one to show the kWh of generated electricity that your utility provider received from you.
-
Your meter measures how much electricity you've used from the utility provider and how much excess you've sent to the grid.
-
If you generate more solar electricity than you can use in one billing period, the excess is banked and can be used in a future billing period.
-
You can actively apply these credits to cover energy consumption from the grid during periods when solar panels generate insufficient power, such as at night or on cloudy days.
-
If you still have generation credits from the banked energy at the end of the year, you’ll get paid for the excess electricity at market price.
Check out these BC Hydro and Fortis BC articles for more information on net metering in British Columbia.
Am I Eligible To Apply For Net Metering?
The net metering program is open to both residential and commercial consumers. You will be eligible to apply for the program if your electricity generators meet the following criteria:
-
You must own or lease your electricity generators
-
Connected to your utility provider’s distribution system
-
Uses a clean or renewable resource as defined by the Clean Energy Act (such as solar, wind, hydro, etc.)
-
The power produced from the generation system only serves your property
-
Have an aggregate nameplate capacity of no more than 100 kW for BC Hydro or 50 kW for Fortis BC
-
Energy production is limited to what is required to offset your expected annual energy consumption
If you meet the above criteria and wish to apply for the net metering program in BC, here’s how to apply for BC Hydro or Fortis BC’s program.
Net metering will not only help you financially by having the potential to reduce your utility bills but will also help you be environmentally conscious and move towards a greener, sustainable lifestyle. At Future West Solar, we can provide guidance for your application, permits, and solar installation grants so you get started on the right foot.
Thinking about taking the step towards solar energy? Future West Solar is a Kelowna-based full-service solar energy contractor with plenty of experience in the Okanagan region. Our experts can help you begin your sun-fueled life in no time. Reach out to us to learn more!