What Everyone Is Saying About Net Metering

Net Energy Meter“What the heck is Net Metering?” – Everyone

I kid, but it is pretty true. Do you remember when they swapped out your meter a couple years ago? That was Phase I of the Net Metering Project. If you didn’t get much information on it, you are not alone!

You see, here in California we are using way more energy than we can create. Just like our water, we must buy Electricity from other areas to charge all our phones, tablets, and watch the Superbowl on our home theater.

The problem is that just like taking the 241 to LA, toll charges may apply. Every station the electrons hit on the way to your house has a fee as it passes through, driving energy charges up. I know my family has 1 Computer, 2 laptops, 3 tablets, 2 phones, an entertainment center… and we are always in the highest tier through the summer because it is SO HOT here in the valley!

The Renewable Energy Act mandated that electric companies needed to get to 50% of the power they generated has to come from renewable energy sources like wind, solar, and thermal. To build out those renewable sources would take a massive investment, and would have to be out in the desert and still involve those high shipping charges.

Making each house capable to produce its own energy eliminates the shipping charges, and helps the utility companies comply with the Renewable Energy Act in a very fast and efficient way.

Net Metering is a way to track the power you create on-site. Your original meter only went forward because that was all it needed to do. With more energy options, the new Net Meter you have goes forward when you consume power, and backwards when you make power. So at the end of the year, you pay for the difference of the energy you made and the energy you used..

About the Author

The world changed for me about two months into my M.B.A. program. While I have always risen quickly to management roles, learning how to truly be a part of a business and its many systems began to really excite me. While I have loved taking out-dated processes and digitizing them for cost savings, I am excited to take my project mangement experience to greater heights and really contribute to a company's growth as the head of a team excited to drive change. -Justin Velthoen

Justin Velthoen

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