You’ve probably heard that net metering is being phased out in Connecticut, but you may not understand the implications. While net metering impacts consumers and the commercial solar industry, it primarily affects homeowners. In this post, we’ll explain how net metering works, what the new system looks like, and how these changes will affect your business.

What Is Net Metering?

Net metering is a solar incentive that essentially allows you to store supplemental solar electricity in the power grid and even get paid for the extra energy your solar system generates. When your solar energy system produces more power than your building consumes, that electricity flows directly back into the electrical grid, and your account is credited for supplemental productions. Then, at times when your facility uses more power than your solar energy system produces, those credits help offset the cost of electricity.

If your solar energy system produces more supplemental energy for the grid than your facility consumes for a given period, your organization can potentially generate positive cash flow by selling solar credits.

Arguments Against Net Metering

Opponents of net metering argue it’s is becoming too much of a loss for utility companies, which then affects ratepayers. Because of this, opponents believe net metering forces people to pay higher electricity prices and spend more to maintain the grid. However, no comprehensive study has been done in Connecticut to prove that net metering results in utility customers having to pay higher rates. That’s because the amount of solar energy produced is generally too small to cause a cost shift for utility customers. Ultimately, net metering in Connecticut was eliminated to satisfy the extreme ideological interests of a small group, rather than the interests of Connecticut’s people and future.

Alternatives to Net Metering

With net metering on the way out, you’re probably wondering what will take its place. Currently, two possibilities exist. The first option is a distributed generation, buy-all-sell-all program. This compensation structure gradually reduces credit rates for energy produced by customer-generators. However, a buy-all, sell-all program does not allow for electricity producers to consume their own electricity.

The second option allows consumers to use the electricity their solar energy systems produce; however, they’ll only be able to do so on a daily basis or less. If your solar system produces more power than your facility uses in a given day, you are required to sell it to the utility company.

CT Solar Energy

If you have more questions about how the phasing out of net metering may impact your solar energy system or the future of solar energy in Connecticut, contact the experts at Verogy today. Our team is here to answer any of your questions about solar energy so you can take the first step to a brighter future.