Solar panels are constantly generating energy whenever the sun is shining. But, much of the energy they produce isn’t needed at the time it’s generated. When it comes to making use of that excess energy, homeowners have two options: Net Metering and Battery Storage.
While both of these options use the excess energy in different ways, and either one can help homeowners save money.
So which option is the best? That depends on a person’s energy-consumption needs, and how they’d like their surplus energy to be used.
Net Metering
Selling Your Excess Solar Energy
Net Metering is a structure of billing that allows homeowners to direct excess electricity generated by their panels back into the grid. In return, the homeowner’s utility company gives them credits that can be used to receive substantial discounts on their monthly utility bills.
The number of credits a homeowner receives is dependent on the amount of leftover energy they generate, and that amount is calculated through a process called Net Metering.
There are three types of net metering models, each with their own credit values and terms:
- Full-Retail Net Metering: This is the net metering option that Solar by CIR offers, and in-short, it amounts to the highest energy savings of the three. In full-retail net metering, the utility company values a homeowner’s excess energy at the same rate that it values retail electricity. If your panels generate excess energy, and that energy is sent to your utility company, you’ll receive the equivalent of that energy in credit. This means the amount of energy you send to the grid is equal to the amount you get discounted from your bill.
- Time of Use Net Metering: This type puts a greater or lesser value on your excess energy depending on when it was generated. Under this model, If your excess energy was generated during peak usage hours, it is more valuable than energy that was generated at less active times of day.
- Avoided-Cost Net Metering: This model values excess energy at what it calls the “avoided cost rate”. That is the amount of money the utility saved by not needing to provide you with the electricity you’ve used. This rate is typically lower than the “full-retail” rate, and here the amount of excess is determined by how that excess is calculated. It’s either tallied up at the end of the month, or at the moment the energy is generated.
Battery Storage
Harness Excess Energy to Use When You Need It
Instead of distributing it back into the power grid, a solar battery allows homeowners to save their excess energy for later use.
For instance, excess energy collected during the middle of the day can be used during the night when there is a lack of sunlight. This can also be helpful during certain times of year, such as Fall and Winter months, where hours of sunlight are fewer throughout the day.
The initial cost of battery storage can be significantly offset through state and federally-mandated incentives. This upfront cost is balanced out by high long-term savings; with intuitive use of solar battery storage, it’s completely possible to avoid using grid electricity, saving homeowners exponentially on their monthly utility bills.
When is Net Metering the Better Option?
New York State practices Full-Retail Net Metering. If you’re looking to maximize your energy savings, it is always a better option than investing in battery storage. Since this model values your energy the highest out of all the Net-Metering plans, it yields the highest possible savings.
When is Battery Storage the Better Option?
Opting for battery storage can be the superior option over Net Metering, but that all depends on how a homeowner wants to use their leftover energy.
While Full-Retail Net Metering is always going to yield higher energy savings when compared to battery storage, battery storage gives homeowners the power to use their leftover energy when they need it, as opposed to exchanging it for energy credits.
If your main priority is getting the most out of the energy generated by your panels, a Solar Battery is the better option because it allows for greater flexibility and efficiency.
Solar by CIR: Helping You Save Money and Energy with Residential Solar
In Buffalo, Rochester, and throughout Western New York, Solar by CIR are the leaders in solar installation. Whether you’re looking to install a solar system for the first time, or considering ways to save money while getting the most out of your panels, Solar by CIR has the expertise and the information you need. Contact us today to learn about our range of services, explore financing options, and more