How Net Metering Works: Everything You Need to Know

featured photo showing what is net metering
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Living in Colorado Springs, we are fortunate to experience over 300 days of sunshine each year. When you invest in solar, that abundance of sun leads to an excess of energy, as your solar system often generates more energy during daylight hours than what your home needs to run on. Due to this, net metering was created as a way to manage utility billing, so the excess of energy can return to the grid. Alternatively, when a solar power system is not generating enough energy, at night for example, then energy from the grid will return to power the home. Each month, residential solar systems and commercial solar systems and business owners that utilize solar energy are only billed for the energy they consume against the energy they generate. 

featured photo showing what is net metering

How Does Net Metering Work? 

Net metering is a utility billing service which only charges solar power owners the difference between the amount of energy their home or business uses and the total amount of energy their solar energy system produces. 

  1. Your solar system absorbs the energy from the sun and converts it into electricity
  2. Any excess energy (the leftover amount after meeting the power needs of your building) goes to the grid
  3. You receive a credit for the amount of kilowatt-hours that your solar system returned to the grid
  4. Next time your solar system needs more energy, your solar system will use the credits to power your building, saving you money.

As a home or business owner who invested in solar, you will actually see your meter move in reverse when your system is producing more than you are consuming. At the end of the month, calculations based on production and consumption will result in your charges. If your solar energy system produced more energy than your home or business consumed, you will receive a credit on your bill. This is one of the biggest incentives to go solar in Colorado!

how net metering works infographic by crj contractors

Benefits of Net Metering and Solar Energy 

  • Savings

Investing in solar leads to significant savings on your monthly utility bill. With net metering, your system can give more power to the grid which reduces your future electricity bills. 

  • Transparency

Net metering allows home owners to see the true investment that solar energy has on their home and finances. Solar is often misunderstood, so being able to produce clean energy and gaining an accurate snapshot of the real value of the energy their system produces is a major benefit. 

  • Protect the Environment

Investing in solar gives home owners more power and control over how much energy they are producing. Through net metering, home owners are encouraged to work hard in their role of producing alternative energy which has a positive impact on the environment. 

CRJ Contractors | Your Colorado Solar Resource 

When you live in Colorado, you see its incredible beauty each and every day. Our natural resources are abundant, but that also means we need to treat them with respect. An excellent way to protect our land is by investing in alternative energy such as solar. Fortunately, Colorado offers many benefits including net metering and state-wide incentives that make the decision to go solar even easier. Net metering is a great way to reduce future electricity costs, promote the wellness of our environment, and take transparent control over your energy consumption and production. 

At CRJ Contractors, we are here to connect our neighbors with the perfect solar energy resources, which means we are able to handle any questions with expertise. If you have questions about net metering in Colorado or other solar related inquires, contact us today! 

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