It’s true that solar energy can be a great financial investment—not just because of the money that you can make—but because of the money you can save. Unfortunately, you can’t just sell your solar power to generate income, however, the biggest benefits that you will see come from your solar energy system will impact your finances.
The great part is, if your solar energy system is part of a grid-tied solar system, you can send the solar electricity that your system generates back to the grid, and you can receive a credit from your utility company, or they might purchase it at a wholesale price. Let’s discuss this a little more…
How Utility Companies Compensate for Solar-Generated Energy
In most states, including Florida, utilities are legally required to have net metering rules. What is net metering? Well, net metering is the method that your utility company uses to compensate you for the excess electricity that your solar power system generates that is then uploaded to their grid.
When the sun is shining, (Hello, Florida!) and your solar energy system is cranking out kilowatt-hours, it might be producing more electricity than your home, property, or business can use. Instead, that excess electricity is uploaded into the grid and is used to meet the electrical needs of your community.
Don’t worry, you aren’t losing this electricity and you aren’t giving it away for free. Your utility company keeps track of how much electricity your solar power system has uploaded and then provides a credit for the same amount of electricity.
This credit can come in handy during times when your solar energy system can’t produce electricity like at night or during storms when the sunlight is blocked. During these times you’ll be able to draw electricity off the grid for free until the utility company pays you back for the electricity that your solar system contributed to the power grid.
Will I Make Money?
Since you aren’t exactly selling your excess electricity to the utility company, you’re not making money. But you are exchanging your excess power for the right to use the same amount of electricity for free at a later time, which saves you money.
Net metering allows you to exchange your excess electricity at the retail rate, which means that it could be worth the same amount that you would pay the utility company for it.
Bypass a Solar Storage System
Because of net metering, you can bypass a solar storage system or the use of backup batteries. While batteries can be a great way to provide your system with backup power when the grid goes down, it can be quite costly to install a storage system large enough to cover all your energy needs if the grid is down or throughout the night or on rainy days.
Solar Power Saves You Money
In addition to various incentives when you install solar panels, such as the federal government’s solar investment tax credit, and regional grants or credits, you could decrease your installation costs by a considerable amount.
Once your solar system is paid off, you can enjoy free electricity for the entire life of the system, which could be over 20 or 30 years. By installing solar energy, you eliminate the need to purchase your electricity from the utility company and in the end, save big on your monthly bills.
Install a Solar System with Solar Bear
The money savings can add up quickly depending on your system and the amount of energy that you use. In just a few years your system could generate enough electricity to pay for itself, leaving you with decades of free solar energy.
Ready to knock out your electricity bill and say goodbye to Big Energy? Contact Solar Bear in Orlando at 727-471-7442 for a solar panel installation consultation. Start saving money on electricity today!