Can a leased solar panel system save you money, and how net metering plays into this?

In today’s tough economy, I’m sure that you have given thought at one time or another to what can be done to save money on your electric bill. You may also have heard about the money saving benefits of going solar, but you likely have reservations because of the large sum of money needed upfront to do so.

While many of you probably know some of the basics behind solar, you are likely  more familiar with how solar systems worked years ago, when the majority of solar or photovoltaic systems installed were offgrid. With today's advancements and lowered price of solar, over 90% of systems installed today are on-grid systems. This is also thanks in part to legislation in over 40 states including NY that allowed for net metering. With this change and new no money down leasing options for solar systems such as what several companies offer, solar power is now obtainable and affordable to more homeowners than ever before.

You may be asking yourself, what is net metering? Net metering is a policy for utility customers that are generating their own power source, such as for any homeowners with a solar panel system on their property. Solar systems are connected to the property owner's main panel and electric meter. The meter will then run in either direction depending on electrical use. When the sun is providing power, the meter runs backwards and you will only receive a bill for the net use of the electricity that you used. The electric company will buy the excess from you and give you a credit on your bill.

Solar panel systems are connected to your home through your utility panel and provide your home with electricity through an inverter. An inverter is a machine that changes the DC or direct current that the sun provides into AC or active current that all home appliances run on.

The setup works like this:

Solar panels collect DC energy then, they send the energy into the inverter, turning it into AC energy. The inverter sends the converted energy into the utilities disconnect switch. The utilities disconnect switch sends the power to the property's electrical panel and net metering setup. The electric panel and net metering setup then send this power to the home. With this kind of setup, if the grid is down, the system shuts off to prevent power from going to the utility poles to prevent problems for the utility workers.

One of the biggest benefits to having solar is it allows you to buy low and sell high. Since you would be using solar during the day when prices for kw use are typically higher and will be mainly using energy supplied by the utility company at night when prices are lower, you can save money.

Obtaining a solar system that would allow you to take advantage of these benefits used to be a dream that many people could never realize. Fortunately,because of companies that provide a variety of options to homeowners including leasing packages with $0 down and free installation, solar power is now an affordable option for anyone. 

Whether you hope to go solar so you can reduce your carbon footprint, save money on your monthly bills, or break free of relying exclusively on the local utility company for power getting solar panels for your home is now an option that is affordable and something that you CAN do. There are many grants available from several states including New York, my home state.