Solar panels that kiss the sun on roofs aren’t just for display. These panels are part of a subtly changing way we measure and manage our electricity. net energy metering is a new phenomenon. This is a billing system that gives solar panel owners credit for the electricity they return to the grid. Intrigued? You should be, if you find that your monthly utility bill is more gruesome than a steak overcooked at a barbeque.

Imagine installing a system of solar energy. It can reduce your electric bill and also help you to reduce your carbon footprint. Here’s what happens: Your solar panels may collect more energy during peak sunlight hours than you need. NEM allows this excess energy to flow back into the utility grid, rather than wasting it. The energy meter runs in reverse, giving you credit for your contributions.

There’s more! You can draw energy from the grid at night or during cloudy days, when your solar panels are sleeping. The grid and your solar system have a give-and take relationship that ensures you always have power. You only pay for “net” energy, hence the term ‘net-metering’.

Imagine it as a bank, except you deposit watts instead of cash. Each kilowatt hour of electricity that you produce beyond what you use immediately is equivalent to a dollar. Like any wise saver, your goal is to maximize the return on investment.

NEM rules can vary significantly depending on where you sleep at night. Some states offer favorable policies which can make you grin from ear-to-ear when you look at your utility bill. Some states may have less substantial benefits and make solar savings more of a chess game.

You’ll come across terms such as “net metering caps” when deciding whether or not to go solar. This could cause you to rethink your decision. This cap restricts the number of customers who can participate in net-metering. It is often expressed as a percent of peak demand by the utility. The utility uses capping to maintain a balance and prevent the financial system from being skewed too far in favor of solar users.

Determining whether or not to go solar also involves a peek at future policies. Legislation is like sand-dunes — what’s beneficial today might not be so tomorrow. Smart homeowners are always on the lookout for any legislative murmurs which might indicate a shift in policy.

Solar panels aren’t only about the financial benefits. Who doesn’t like to be known as an “eco-friendly neighbour”? A solar-powered home can also increase the value of your property. The sleek array of solar panels may be more appealing than you think. They could entice prospective buyers by offering them the promise of lower energy costs.

It can be refreshing to dip your feet into the solar water, but it requires some foresight. Imagine that your system produces more energy than you are able to handle. Although it may be tempting to believe that the credits will continue to roll over indefinitely, this is not always the case. You might have to plan your consumption and production based on the expiration date.