What is Net Metering? Or How Your Electric Meter Can Run Backwards
Pennsylvania energy-buffs may have noticed the term ‘net - metering’ being tossed around local news recently. In June 2006 the Pennsylvania Public Utility Commission, the board that governs the creation and distribution of energy in the state, decided to allow net metering in an effort to join the other 39 states nationwide that already have such regulations.
But what exactly does this mysterious term mean? The quick definition breaks down the actual term, first ‘net:’ meaning an amount remaining after deductions, as for charges or expenses, opposed to gross. Second ‘metering:’ the action of using a meter to measure an amount or volume. When put together the energy-world is describing the practice of creating electricity through alternative means (i.e. residential windmill, small-scale solar panels), which is used first to offset electricity purchased from the utility company and if excess, or net, remains to actually create a profit. So electricity that is created ‘off-grid’ by an individual causes their electric meter to spin backwards-creating credit against future ‘on-grid’ usage and then a profit if the individual creates more energy than they use. Make sense? … if not read further.
Why use Net Metering?
The same energy buffs that are familiar with the term net metering realize its potential to an individual, household or organization to decrease its dependency on the electric company and whatever method that utility may use to generate electricity. In southwestern Pennsylvania most electric providers use coal powered generators to create the energy sent through local power lines. In an effort to use cleaner fuel, anyone with an electric meter can install their own ‘off-grid’ energy producer and lessen their effect on the environment. In some situations - when the alternative energy system is large enough, or the electric usage of the individual or organization is low enough - that backward-spinning meter can amount to an annual refund check. Who needs a better reason to use net metering than a check in the mail?
How to Establish Your Own Net Metering System
First a homeowner or business owner should realistically assess their alternative energy capabilities; these include questions like ‘Which system would be best suited to the space I have available?’ and ‘What type of system can I afford to install and maintain?’ Also individuals should consult an alternative energy expert as to the levels of performance that can be expected to insure that the most electricity is generated as possible. The PUC rules state that net metering can apply to the following alternative energy technologies:
- Solar (aka Photovoltaics), Landfill Gas, Wind, Biomass, Hydroelectric, Fuel Cells, Municipal Solid Waste, CHP/Cogeneration, Waste Coal, Coal-Mine Methane, Anaerobic Digestion, Other Distributed Generation Technologies.
Further Resources
Below are listed some websites that can be helpful in your continuing research on net metering and alternative energy.
- Database of State Incentives for Renewables and Efficiency
- Pennsylvania Public Utility Commission
- The American Wind Energy Association
