Solar panels, also known as photovoltaic (PV) panels, provide alternative energy sources. Sleek, shiny panels can harness power from the sun straight from your rooftops and completely transform your traditional utility needs.
Solar panels aren’t only for corporations or the tech-savvy, they’re for everyone! Solar panels can meet many needs and can even get you money back. With incentives such as net metering, a solar panel system may be best for your household.
In this blog, we will discuss:
- Net metering explained
- What are the pros and cons of net metering?
- Is solar worth it without net metering?
- Why do utilities hate net metering?
- Does Arizona have net metering for solar?
Net Metering Explained
Net metering is a company’s ability to buy back excess energy generated by solar panels. Alongside sustainable, environmental, and cost-effective incentives, net metering ensures that solar panels have a high return on investment. By purchasing solar panels, you are not only seeing major savings in your utility bills but are also being compensated for any extra energy you collect from your home. The sunnier the state or location you live in, the more excess energy you are likely to produce.
In the winter, with shorter days and more unpredictable precipitation, excess energy is less likely to come by. However, the majority of utility companies will use summer credits to offset higher winter costs. The energy produced in the months before then allows customers to receive payments.
What Are The Pros and Cons Of Net Metering?
The most recognizable pro of net metering is the high return on investment (ROI) for your solar panels. Utility companies give homeowners complete compensation for the energy that they give back at full-retail prices. So not only are the costs of your home energy quickly decreasing, but you also have the opportunity to make extra money on top of it. This makes net metering extremely beneficial for solar panel homeowners.
For those who do not own solar panels, net metering can present itself as a con. Cons include:
- Higher electricity costs for those who don’t own solar panels.
- More difficulties for utility companies to schedule power generation.
- Low-income families or small businesses can’t access solar benefits.
Cons for solar energy don’t present themselves to the owners of solar panels but can affect those without this source of energy. But, community solar initiatives have helped community members without panels see the benefits of them.
Is Solar Worth It Without Net Metering?
Solar power can completely transform your home and finances. Tapping renewable energy from the sun can increase the value of your property while significantly reducing your utility bills. As electricity prices rise, with a 4.3% increase in 2021 alone, investing in solar panels can bring financial benefits. With low maintenance costs, you can preserve your solar panels for up to 25 years. While solar power installation can cost upwards of $10,000, you will see a return on investment over the next 2-3 decades. Even if you are not receiving net metering, it’s reliable and “worth it” investment.
Why Do Utilities Hate Net Metering?
Utility companies hate net metering programs because they have to pay homeowners for excess electricity produced by their solar panels. This offsets the monthly bill for electricity usage and impacts utility companies’ income. After seeing the benefits of net metering, homeowners will typically stray from traditional utilities and no longer pay for electricity. By affecting sales, utility companies hate net metering.
Does Arizona Have Net Metering For Solar?
Arizona doesn’t offer net metering, but in 2016 introduced a solar panel installation incentive program called a net billing program. This entails that instead of being compensated for the entire amount of energy sent back into the electric grid, homeowners will receive a fraction of the retail price. Each state compensates for net metering differently, but even at a portion of the value, the buy-back system is a sustainable way to give back offset energy and energy costs.
Our World Energy Can Provide Specialized Services
Electricity generated by your solar panels can provide you with both money-saving and money-making opportunities. With adequate compensation, you can create a sustainable future and an economically-friendly neighborhood.
With services in Arizona, Nevada, New Mexico, and Texas, see how our products can help you see the benefits of net metering.
Our world revolves around powering yours, join us by getting innovative technology that cuts the cost of your energy bill!
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