Solar Power and Net Metering: Understanding How It Works and How You Can Benefit


In the quest for cleaner and more sustainable energy sources, solar power from a reputable solar company in Calgary has emerged as a shining star. As technology advances and awareness about environmental issues grows, more individuals and businesses are turning to solar energy to power their lives while reducing their carbon footprint. One of the key mechanisms that make solar energy even more appealing is net metering.

Find out about what solar power and net metering are, how they work together, and how you can reap the benefits of this dynamic duo.

Solar Power: Harnessing the Sun’s Energy

At its core, solar power involves the conversion of sunlight into electricity through the use of photovoltaic (PV) cells. These cells, typically made from silicon, capture photons from sunlight and convert them into direct current (DC) electricity. This DC electricity is then converted into alternating current (AC) using inverters, making it compatible with the electrical systems of homes and businesses.

  1. Clean and Renewable Energy: Solar power is a renewable energy source, meaning it relies on a nearly limitless resource—the sun. Unlike fossil fuels, solar energy and renewable energy don’t emit harmful greenhouse gases or contribute to air pollution, making it a key player in combating climate change.
  2. Lower Energy Bills: By generating your own electricity from the sun, you can significantly reduce your reliance on traditional energy sources and lower your energy bills. As the cost of solar panels decreases and energy prices continue to rise, the financial benefits become even more appealing.
  3. Low Maintenance: Solar panels are relatively low-maintenance compared to other forms of energy generation. Regular cleaning and occasional inspections are usually sufficient to ensure optimal performance.

Net Metering: The Power of the Grid

Net metering is a billing arrangement that allows solar panel owners to earn credits for any excess electricity they generate and feed back into the grid. When your solar panels produce more electricity than your home or business consumes, the excess energy is sent to the grid, effectively turning your electric meter backward. This surplus energy is credited to your account, and you can use these credits to offset the cost of the electricity you draw from the grid when your solar panels aren’t producing enough energy.

  1. Energy Independence: Net metering provides a level of energy independence. On days when your solar panels produce excess energy, you’re essentially creating a “bank” of credits that you can draw from during periods of lower solar production or higher energy consumption.
  2. Financial Savings: By taking advantage of net metering, you can significantly reduce your energy bills or even earn a surplus credit. This can lead to substantial savings over time, allowing you to recoup your initial investment in solar panels more quickly.
  3. Environmental Impact: The combination of solar power and net metering contributes to a reduction in greenhouse gas emissions and reliance on fossil fuels. As you produce clean energy and contribute to the grid during peak hours, you’re playing a role in the transition to a more sustainable energy future.

How Solar Power and Net Metering Work Together

The synergy between solar power and net metering is what truly sets this combination apart. When your solar panels produce more electricity than you currently need, the excess energy is fed back into the grid, and your meter runs in reverse, accumulating credits. These credits can be used to offset the cost of electricity you draw from the grid when your solar panels aren’t generating enough energy, such as during nighttime or cloudy days.

For instance, during the day when the sun is shining and your solar panels are producing excess energy, you effectively “bank” those credits with the utility company. At night, when your solar panels are inactive, you draw electricity from the grid, using up the credits you accumulated earlier. This process creates a seamless flow of energy that maximizes the benefits of solar power while ensuring a reliable source of electricity around the clock.

How You Can Benefit

  1. Financial Savings: The combination of solar power and net metering can lead to substantial savings on your energy bills. In some cases, you might even end up with a net-zero energy bill or receive payments from your utility company for the excess energy you contribute to the grid.
  2. Return on Investment: The upfront cost of installing solar panels can be offset by the savings you accrue over time through reduced energy bills and potential net metering credits. Depending on your location, solar incentives, and energy consumption, you can achieve a favorable return on your investment within a reasonable timeframe.
  3. Environmental Impact: By generating clean, renewable energy and contributing to the grid during peak demand times, you’re reducing your carbon footprint and supporting the shift towards more sustainable energy practices.
  4. Energy Independence: Net metering allows you to take control of your energy consumption and production. You become less reliant on traditional energy sources, providing you with greater energy independence and stability.


Solar power from a solar company in Calgary and net metering offers a powerful solution for reducing energy costs, promoting sustainability, and contributing to a cleaner environment. By harnessing the sun’s energy and leveraging the grid’s capabilities through net metering, individuals and businesses can enjoy financial savings, a favourable return on investment, and a reduced impact on the planet. As technology continues to advance and solar adoption increases, the synergy between solar power and net metering will play an essential role in shaping a more energy-efficient and environmentally conscious future.