top of page

Get A Free Solar Report

With 18 Months Free and $0 Down!

Get an additional $500 off when you mention solarsmartmn.com during the free consultation.

Schedule a free consultation

With a professional certified Blue Raven Solar Representative

Discounts only apply to in person and video consultations

SolarSmartMN.com  Blogs

Understanding Net Metering and Grid Connection

Updated: Feb 23


Solar energy is becoming increasingly popular as a renewable and sustainable source of power. With the rise of climate change and the push for clean energy, many homeowners and businesses are turning to solar panels to reduce their carbon footprint and save on energy costs. How exactly does solar energy work, and what is the process for connecting your solar panels to the grid? In this article, we’ll explore the basics of solar energy, net metering, and grid connection to help you understand how to harness the power of the sun.


solar panels and windmill

How Solar Energy Works

Before we dive into the specifics of net metering and grid connection, it’s important to understand the basics of solar energy.

Solar panels are made up of photovoltaic (PV) cells, which convert sunlight into electricity. When sunlight hits the PV cells, it creates a flow of electrons, generating direct current (DC) electricity. This DC electricity is then converted into alternating current (AC) electricity through an inverter, which is the type of electricity used in homes and businesses.

The electricity generated by solar panels can be used immediately or stored in a battery for later use. Any excess electricity can also be sent back to the grid for credit, which is where net metering comes into play.


What is Net Metering?

Net metering is a billing mechanism that allows solar panel owners to receive credit for the excess electricity they generate and send back to the grid. This credit can then be used to offset the cost of electricity drawn from the grid when the solar panels are not producing enough energy.

For example, if your solar panels produce more electricity than your home or business uses during the day, the excess electricity is sent back to the grid and you receive a credit on your electricity bill. Then, at night when your solar panels are not producing energy, you can use that credit to offset the cost of electricity drawn from the grid.

Net metering is a crucial aspect of solar energy because it allows solar panel owners to save money on their electricity bills and make the most of their investment in solar energy.


How Does Net Metering Work?

Net metering entails the installation of two meters: one to gauge your electricity consumption from the grid and another to track the surplus electricity you contribute back to the grid. Usually facilitated by your utility provider, these meters integrate with your solar panel system. When your solar panels generate surplus electricity surpassing your immediate needs, the excess is fed back into the grid. Consequently, your meter reverses its rotation, generating credits on your electricity bill. These credits can subsequently offset the expenses incurred when drawing electricity from the grid during periods of insufficient solar energy production.


Net Metering Policies

Net metering policies vary by state and utility company, so it’s important to research the specific policies in your area. Some states have specific laws in place that require utilities to offer net metering, while others have voluntary programs or no net metering policies at all.

It’s also important to note that net metering policies can change over time, so it’s important to stay informed and understand any potential changes that may affect your solar panel system.


Net Metering Minnesota

As of my last update in 2022, Minnesota has a net metering policy in place to support residential and commercial solar energy systems. Net metering allows customers with solar panels or other renewable energy systems to offset their electricity costs by generating electricity on-site and exporting any excess electricity back to the grid.


Man working on solar panel


















Connecting Your Solar Panels to the Grid

In order to take advantage of net metering, your solar panels must be connected to the grid. This process involves several steps and may vary depending on your location and utility company.


Step 1: Obtain Necessary Permits and Approvals

Before installing your solar panel system, you will need to obtain any necessary permits and approvals from your local government and utility company. This may include building permits, electrical permits, and interconnection agreements.


Step 2: Install Your Solar Panel System

Once you have obtained the necessary permits and approvals, you can begin the installation process. This typically involves mounting the solar panels on your roof or in your yard and connecting them to your inverter and electrical panel.


Step 3: Connect to the Grid

Once your solar panel system is installed, it needs to be connected to the grid. This entails the installation of a bi-directional meter, which tracks both the electricity you use from the grid and any surplus electricity you feed back into the grid.

Additionally, your utility company will conduct an inspection of your system to ensure it meets the necessary standards for grid connection. This inspection may include a site visit and a thorough evaluation of your system's design and installation.


Step 4: Activate Net Metering

After your solar panel system is linked to the grid, you have the option to initiate net metering with your utility provider. This usually requires completing an application and furnishing details about your system, including the size and type of solar panels, inverter, and any battery storage units (if applicable).


Engineers inspecting solar panels on roof

Benefits of Grid Connection and Net Metering

Grid connection and net metering offer several benefits for solar panel owners, including:

  • Cost savings: By sending excess electricity back to the grid and receiving credit for it, you can save money on your electricity bill.

  • Increased energy independence: By generating your own electricity, you are less reliant on the grid and can reduce your carbon footprint.

  • Environmental benefits: Solar energy is a clean and renewable source of energy, reducing the need for fossil fuels and helping to combat climate change.


Conclusion

Solar energy is a powerful and sustainable source of electricity, and net metering and grid connection are crucial components of harnessing its full potential. By understanding the basics of solar energy, net metering, and grid connection, you can make informed decisions about implementing solar panels for your home or business.

With the rise of climate change and the push for clean energy, now is the time to consider harnessing the power of the sun and making a positive impact on the environment and your energy costs.




4 views0 comments
bottom of page