Thomas Neyhart from PosiGen Explains How Net Metering Can Save Money on Energy Bills
PosiGen, a leading solar energy company based in Louisiana, wants people to get a handle on their electricity bills. Company officials also state that many utility providers purposefully make their billing procedures complicated and confusing to “keep people in the dark.”
But solar energy is different, a PosiGen blog article states. It provides a simple and straightforward way for anyone to trim their electricity bills month by month. PosiGen has fitted more than 14,000 homes with solar panel systems that draw free energy from the sun and convert it to usable electricity. However, Thomas Neyhart states that solar energy does not go directly to power such things as lights, refrigerators or your television. Instead, PosiGen configures its systems to work with something called net metering.
Here’s how it works:
Every home that buys electricity from a provider has a kilowatt meter. It measures how much energy the home uses. The utility company uses the kilowatt meter to measure and calculate how much electricity you draw and how much you owe. The number of kilowatt-hours is multiplied by the price of electricity for each kilowatt-hour. Thus, Thomas Neyhart explains, the formula for determining your bill is the number of kilowatt-hours times the current market price of a kilowatt of electrical energy. Your provider also adds various fees and other charges. This is a “one-directional” arrangement. That is, all the energy comes from the power company to your home.
However, a home fitted with a PosiGen solar panel system sets up a two-direction arrangement. When the solar panels on your roof generate energy, it feeds that power back into the grid that connects your home to the power company. Now, in addition to buying power from the company, you are also generating your own power and sending some of it back to them. Then, Thomas Neyhart keeps on, electricity can be sent to and from the power company using the same power lines. For every kilowatt of energy you send back, that amount is subtracted from your bill. That’s how net metering works. Homeowners with a PosiGen system can easily trim their bills by $50 a month with a simple solar panel system that will work for years to come.