Quick Answer
Savings from net metering are calculated by determining the amount of excess energy produced by a solar grid tie system and comparing it to the amount of energy consumed by the user, with the excess energy sold back to the utility at a specified rate.
Understanding Net Metering Rates
Net metering rates vary by utility company, but most pay a fixed rate per kilowatt-hour (kWh) of excess energy produced. For example, if a utility company pays $0.15 per kWh, and a solar grid tie system produces 1,000 kWh of excess energy in a month, the savings would be $150.
Calculating Monthly Savings
To calculate monthly savings, start by tracking your energy consumption in kWh. Then, calculate the amount of excess energy produced by your solar grid tie system in kWh. Multiply the excess energy produced by the net metering rate to find your monthly savings. For example, if your energy consumption is 800 kWh and your solar grid tie system produces 1,200 kWh, the excess energy produced is 400 kWh. If your net metering rate is $0.15 per kWh, your monthly savings would be $60.
Annual Savings and Incentives
To calculate annual savings, multiply your monthly savings by 12. Additionally, consider any incentives or tax credits that may be available for solar energy systems, such as the federal solar investment tax credit (ITC) or state-specific rebates. These incentives can significantly reduce the upfront cost of a solar grid tie system and increase your annual savings.
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