Empowering Homeowners: A Guide to Connecticut's Netting Tariff
For many people, ringing in the new year starts with the goal of saving money; which, as we all know, is never as easy as it sounds. Still, many people add the goal of being a greener household, or more energy conscious. With the addition of a residential solar system and the use of the netting tariff program here in Connecticut, you can easily accomplish both of those goals!
If you are thinking about going solar and are on the fence, this blog will help you understand one of the greatest benefits of solar power: the netting tariff program. Earthlight Technologies is here to educate you and help you understand this seemingly complex process. Let’s break it down into a few parts!
What is the Netting Tariff?
The netting tariff is Connecticut’s answer to net metering, replacing the state’s previous system as part of the Residential Renewable Energy Solutions (RES) Program. This updated approach is designed to encourage more homeowners to harness the power of solar energy while providing new compensation options. The netting tariff is one option, and in simple terms, it allows you to generate your own electricity using solar panels and earn monetary credits for any excess energy you produce. These credits can then be used to offset your future electricity bills, putting you in control of your energy expenses.
How Does it Work?
Imagine your home with solar panels on the roof. As these panels soak up the sun's rays, they generate electricity. When your solar panels produce more electricity than your home consumes, the excess energy doesn’t go to waste. Instead, you can sell back to the grid; you receive monetary on-bill credits on your utility bill for the energy you’ve contributed. These credits are used to offset your electricity costs during times when your solar panels aren’t producing as much energy, such as at night or during the winter months.
Solar Net Metering Bill Example
Let’s take a look at an example of what metering credits would look like on your electric bill if you are a homeowner in Somers, CT.
Above is the dreaded electric bill. Some of it might look unfamiliar to someone without solar power, so let’s explore.
Let’s go top to bottom; First, let’s take a look at that -$1,562.18 on the top line. This number is the amount of money the utility company has credited to this homeowner. As a homeowner, you earn credit when your energy produced from your solar array is more than what is consumed in a pay period. These credits are calculated based on the retail rate, meaning you receive compensation at the same price you would normally pay for electricity from the grid. Additionally, these credits are similar roll-over minutes for your phone, meaning that they accrue over time!
We then subtract the amount you owe from your built-up credits, in this case the “Total current charges” amounts to $302.41. In this case the homeowners' credits fully pay for their electric bill! This is shown with the “Total Amount Due”, in this example the homeowner “owes” -$1,259.77. This remaining number is the credit they have left after paying, they still have credit left over to pay for future electric bills!
Benefits Of Net Metering in Connecticut
Financial Benefits
One of the most appealing aspects of the netting tariff for homeowners is the significant financial benefit it brings. By participating in this program, you can see a substantial reduction in your electricity bills. The more energy your solar panels produce, the more credits you accumulate, translating into more savings for you. It's a win-win situation – you save money while contributing to a sustainable energy future. Plus, when you live in a Distressed Municipality or meet certain income qualification standards, you will also receive additional payouts from your utility!
Energy Independence
Produce your own clean energy and rely on yourself more for your energy solution instead of fossil fuels. This impact can be felt the most during the unpredictable winters across New England.
Increased Home Value
Solar panels can also impact the value of your home and property; to the right buyers this can be seen as an investment that the new homeowner can also benefit from!
Environmentally Friendly
You can support Connecticut’s renewable energy goals by contributing to a cleaner, more sustainable energy future while also achieving your own renewable energy goals.
The Connecticut netting tariff program ensures that every kilowatt-hour your solar panels generate contributes to both your wallet and the planet!
Steps to Get Started Today
Choose your Installer: Find a reputable solar installer to set up a solar installation on your property.
Qualify for Incentives: Inform your installer of any state or utility hardship programs you participate in to increase your incentive.
Connect to the Grid: Your solar panels will be connected to the electrical grid, allowing surplus energy your system generates to flow back to the grid.
Offset Your Bills: Use these credits to offset your future electricity bills and enjoy the benefits of your solar investment!
Net metering in Connecticut is more than just a financial tool, it’s a way for homeowners to take control of their energy future. By understanding how it works and the benefits it provides, you can make informed decisions that align with your goals. With the state’s incentives and policies supporting solar adoption, there’s never been a better time for solar in Connecticut!
Ready to learn more? Contact us today to explore how net metering can work for you and take the first step toward a brighter, more sustainable future!
Frequently Asked Questions (FAQs)
What Happens If I Produce More Energy Than I Use?
Excess generation of energy is credited to your account and can be used to offset future electricity bills.
How Long Do Credits Last?
Credits typically roll over month to month within a given billing cycle, but specifics may vary depending on your utility provider.
Is Net Metering Going Away in Connecticut?
No, the net metering program has been replaced by Connecticut’s Residential Renewable Energy Solutions (RES) Program, which offers two new compensation options: the Netting Tariff and the Buy-All Tariff.
Can I Switch Between Buy-All, Sell-All and the Netting Tariff?
The two systems require different electrical equipment to run and benefit your household! It is not a simple process to switch. The netting tariff program is wired to allow self-consumption whereas the buy-all program requires a special meter and does not allow for self-consumption of energy before sending it to the grid.