Setting up your home with solar power can help reduce both your energy bills and your carbon footprint leading to a greener and cheaper cost of living. Over recent years, any energy generated that was directed back to the grid would result in a financial payment or credit. However, as of June, 31st 2017 at 11:59 pm Edison will no longer be giving credits to people who generate extra energy via solar power that gets pushed back into the grid. This credit is known as the NEM, or Net Energy Metering Credit.
Net energy metering monitors your solar energy production and any energy pushed back into the grid will result in a credit on your bill. The more energy created the more credits earned resulting in a huge reduction of bills and in some instances the earning of money. The NEM will be closing to new customers from this date and time, those who have registered before the cutoff will be eligible for credits.
Installation of solar panels is a quick and painless one and allows the homeowner to generate solar power to provide eco-friendly and economical energy to the home. Generating your own power does have its own set of perks, with the Net Energy Metering Credit being one of the best. When you are using NEM the metering can monitor the flow of energy in two directions, the inflow to the home and the outflow to the grid. This is how credits are calculated and then added to your bill helping reduce energy consumption costs.
As of July, 1st or before if the NEM1 program reaches its cap of 2,240MW, whichever comes first the program will close. This means that to be eligible to receive credits you need to become a registered member by this point in time. All required documents must be completed and submitted in full, failure to do so will make you ineligible for the program. Once NEM1 has reached its cap the current tariff will close and only be available to those who were a part of the program before the cut off time, its successor NEM2 will begin with its own set tariff.
While this can seem confusing, it is quite a simple process. If you are considering having home solar panels installed and are worried about the initial cost then you may be surprised to learn that certain people are eligible for a 30% federal tax credit. For residential solar panels, there are also the options of finance and leasing. Leasing your solar system can help reduce costs and make maintaining the systems much more affordable as they, in essence, belong to a company or another individual, you can’t receive the 30% federal tax credit on a leased solar system. The cheaper alternative is to take out a loan which you can make monthly repayments on and can save you up to 29% when compared to leasing your solar energy system
There are many solar companies that can source and install your solar panels. Hiring a company for solar panel installation means that you can rest easy knowing that they are being secured and placed in the correct manner. Of course, if you have knowledge or experience of them you could install them yourself, but it is best to leave it to professionals to minimize the risk of damage to your equipment or home. Solar panels costs depend on the type and quantity that you have installed. It is important to remember that solar energy can drastically reduce your energy bills and earn you credits which ultimately mean that they will pay for themselves over the long term. Solar panels are no longer as expensive as they were in the not so distant past. In fact, with more competition from around the globe in the solar energy market there have been some reductions in costs of manufacturing and purchasing making the green option a much more affordable one. Gone are the days when solar energy was the reserve of large corporate companies and retail outlets. It is now an accessible and easily installed option for every type of homeowner, no matter how large or small your property is.
NEM2 will have the following conditions attached that are not a part of the NEM1 program. For a start, the interconnection fee that is waived in the NEM1 programme will cost $75 for systems of 1MW-AC or below, or $800 for systems above 1MW. There will also be a mandatory TOU Rate (Time of use rate) meaning that you must use energy at set periods of the day to benefit from any savings. While you could save money on the TOU rate, depending on your daily schedules and general energy usage you could find your bills increasing instead of decreasing. If you already own solar panels or produce solar energy, now is the time to make sure you are registered for the NEM1 Program.
This is why it is important to ensure that you have completed registration for the Net Energy Metering Credit by June, 31st at 11:59 pm. If you want to benefit from going green and make sure that you are entitled to credits then you need to move quickly. After all, the credits you earn help reduce the costs you pay for solar panels thus make them an affordable and profitable option. Solar energy is the way forwards and it is vital to make sure that you have everything in place by this date to be able to take advantage of this benefit. Failure to do so results in the potential loss of any credits you may have been able to gain and reduces the cost effectiveness of solar panels.
Solar panel can make a huge difference to your everyday energy consumption by making you more aware of the energy you use and the energy you can push to the grid in exchange for credits, it is also environmentally friendly and unobtrusive when installed. Act now to ensure you get to reap the rewards of any solar energy you produce. If you don’t then the only loser in it all is you.