Net Metering: Affordable Solar Panels that Actually Pay You

For people who like the idea of living off the grid and investing in renewable, sustainable energy, charging your home with solar panels probably sounds up your alley.

But I was recently told by a friend of mine who works for a solar company: “It doesn’t make sense to get off the grid.”

His name is Eric Gomez, and he works as the Director of Marketing and Sales for Climatic Solar Corporation in Vero Beach, Florida. He told me living off the grid by using solar energy just doesn’t make financial sense for homeowners like you and me.

He has a point.

Sure, solar will, in fact, help you get off the grid. But unfortunately, the reality is that the cost is entirely too much for most people. Eric explained that a typical three-bedroom house in Florida will require a one-time $50,000 outlay to run completely off the grid.

He estimated it would take about 10 years for such an investment to break even. After that, it’s all gravy.

For some people, it makes sense. They can spend tens of thousands of dollars to secure personal energy independence.

For others, it doesn’t. They can’t spend that much when grid electricity is so much easier and cheaper. I know I can’t.

Luckily, there are ways a solar-power system can help us save money — even while we’re still living on the grid.

Not only that, but solar saves our planet, too. It is a clean energy that doesn’t pollute our air with lung-damaging emissions. And it’s infinitely renewable! Plus, solar use increases our energy independence.

But today, let’s focus on solar’s money-saving powers. You see, I’ve discovered a way to make you happy with your energy bill and shield you from rising prices …

The Bright Side of Solar Power Net Meters

You can install a complete solar package to produce all your own electricity and drop your power bill to zero — without departing from the grid.

And you’ll save about $20,000 (the cost of a battery bank) because the utility company will store your excess energy production for free. They’ll credit it back to you when you need it, too.

How? By tracking your solar energy production.

Eric Gomez explained to me that it all comes down to something called “net metering.”

Net meters allow customers who generate electricity through their solar panels to feed electricity back into the grid. The meter also gives the consumer a breakdown of usage with each monthly bill. You can monitor exactly how much it’s costing to cool or heat your home, wash your dishes or dry your clothes, for example.

Yes, there are alternative, cheap and easy ways to knock 5% to 10% off your electric bill. You can re-caulk window frames, switch to energy-efficient light bulbs, use insulated electrical outlet covers and replace weather stripping around doors. Closely monitoring and tweaking your precise energy use is another way to knock down that monthly bill even further.

But the net meter does so much more to help you save …

Put It on My Tab

Net meters don’t just monitor usage. They also track your solar energy production.

They register how much energy you produce and how much you use.

When you produce more than you need, the surplus gets passed along to the power company and credited to your balance. Sweet!

Conversely, when you need more than you produce, you get energy from the power company. This draws on any energy credits you’ve accumulated from previous monthly surpluses.

It may seem like an accounting sham to discreetly increase the utility company’s control. But, using Florida as an example, including the cost of the system and federal rebates, it ultimately reduces your annual energy bill by 27% (assuming an average annual energy use of 1,200 kilowatt hours). Plus, you’d be making 11% worth of surplus energy production each year. So in Florida, solar puts an average $12,200 in your pocket over that time. Not a bad deal.

You might as well invest in solar, track your production with a net meter and save money by selling energy to the power company.

Plus, solar has another HUGE benefit …

Solar Protects You From Inflation

One reason to get off the grid is to escape the rising cost of energy.

Solar lets you do that … on the grid.

How?

Let’s say you produce 120 kilowatt hours with solar, but you only use 100 kilowatt hours. You bank 20 kilowatt hours for a rainy day (literally).

Now let’s say your utility company raises their rate — they charge 5% more per kilowatt hour.

You still use the same amount of energy (100 kilowatt hours) but now, some time after the rate increase, you only produce 80 kilowatt hours. You’re short 20 kilowatt hours.

Luckily, you banked 20 kilowatt hours before the rate increase.

Since energy is energy, you produce what you produce and consume what you consume, despite the change in cost. With this exchange of energy you get back what you put in and essentially escape the rate increase.

Simply put: It’s inflation protection.

What’s the Point if We Still Depend on Utility Companies?

Believe me: I hear you.

When I think “solar,” I think personal energy independence.

For now, though, integrating solar with the grid makes the most financial sense for the greatest number of people.

But that’s bound to change.

Technology is continuously improving. That will lead to cheaper solar panels and cheaper batteries to store surplus energy. In other words: getting off the power grid is only going to get easier for the masses.

Eric gave me some good news about that.

You can install a solar power system that’s tied into the grid and, at any time in the future, you can install a battery back-up without the need for a new system.

So if a tech company finds a way to produce cheaper, more effective batteries in the next five years, you may decide it’s time to purchase a battery back-up system. And you’d already have the solar infrastructure in place to get off the grid.

And that’s likely to happen. Here is a chart from Forbes.com that estimates the declining cost of lithium batteries used in solar power:

Keep in Mind …

What I’ve shared is the perspective of one company in one state.

Several variables can change the solar proposition. It depends a lot on where you live.

Some states offer leasing programs that make it relatively cheap for a consumer to run on solar energy. Some states don’t see enough sun to fully cover their energy needs. Some states offer unique financing programs geared specifically to energy efficiency upgrades.

I’ll say it: The future of solar is bright.

It’s an investment that’s worth a look at right now. Inflation protection is a very persuasive feature. Free storage of surplus energy production is nice, too. And a detailed breakdown of energy usage could prove helpful.

I know: Net meters reek of Big Brother, and as with anything I discuss with you in Sovereign Living, I’m not content with a system that still relies so much on centralized control.

But I’m resigned to current solar solutions for now because they can help save money. In this case, I believe the benefits definitely outweigh the negatives.

And keep in mind that my research into solar is not done.

I plan to follow the progress in photovoltaic and battery technology. And I’m going to explore avenues and knowledge that might allow the do-it-yourself type to customize a solar-driven energy solution on the cheap.

Stay tuned.

To quality living,

JR Crooks
Editor, Sovereign Living

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