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Net Metering Settlement in Utah

April 26, 2018
Solar News
Utah Solar

Net Metering Settlement in Utah

Recently, in the state of Utah, a settlement was reached that allows Rocky Mountain Power to end their current net metering program for reimbursing their customers who have installed solar panels. A new plan allows Rocky Mountain Power to slightly lower the amount paid to solar users who generate excess energy and to recoup those costs by spreading them across all of their Utah customer’s power bills. 

What exactly is net metering?

When you have a solar system, you often produce surplus energy at certain times of the day. When this happens, your electricity meter runs in reverse.

For example, solar energy reaches a peak at mid-day and usually produces more energy than is used for that time of day. This generates a credit with the power company that is then used in the morning, evening, or throughout the night when solar production is less and usage higher.

Another way to think about net metering is to think in terms of yearly use. The right solar energy system for your home is sized to produce enough electricity to match your electricity use for the year. The amount of electricity produced by your solar system, however, varies day by day.

Net metering ensures that production and usage are averaged over a period long enough to account for daily production and usage differences. Most states have some form of net metering. State policies and rules vary.

Think of net metering, also known as net energy metering, as your own personal energy bank. It allows you to store surplus energy generated by your solar system. This energy can be withdrawn from the grid during hours of under-production by your system. This is a typical occurrence at night.

Net metering is the most common way that utility companies compensate homeowners that have gone solar.  In fact, as of 2016, forty-one states and Washington DC have mandatory net metering rules. Most states have state incentives for renewable energy and the efficient use of energy. 

Utah’s recent ruling is meant to keep Utah’s solar business healthy. More and more states are doing the same. 

We offer a free service that will help you to find the right solution for your home and budget.  Contact us today if you’d like to lower your yearly energy bills, lessen your carbon footprint, and increase the value of your home.

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