Gross Metering vs. Net Metering

Attribute	Gross Metering	Net Metering
Definition	Measures all electricity generated by a renewable energy system	Measures the difference between electricity generated and consumed
Compensation	Compensated for all electricity generated, regardless of usage	Compensated for excess electricity generated, credited or paid for by utility
Usage	Does not take into account electricity consumed on-site	Allows for self-consumption of electricity before excess is exported
Impact on bills	May result in higher bills due to lack of self-consumption credits	Can reduce bills by offsetting electricity consumption with generated power

When it comes to solar energy systems, there are two main types of metering options available for homeowners: gross metering and net metering. Both options have their own set of attributes and benefits, and understanding the differences between the two can help homeowners make an informed decision about which option is best for their needs.

Gross Metering

Gross metering, also known as total consumption metering, is a system where all the electricity generated by a solar energy system is fed back into the grid. In return, the homeowner receives a fixed rate for all the electricity generated, regardless of whether it is used on-site or fed back into the grid. This means that the homeowner is essentially selling all the electricity generated by their system to the utility company.

One of the main benefits of gross metering is that it provides homeowners with a guaranteed income stream from their solar energy system. Since the homeowner is paid a fixed rate for all the electricity generated, they can accurately predict how much money they will receive each month. This can provide peace of mind and financial stability for homeowners who rely on the income generated by their solar energy system.

However, one of the drawbacks of gross metering is that homeowners do not receive credit for the electricity they use on-site. This means that homeowners may end up paying more for their electricity bills, as they are not able to offset their electricity usage with the electricity generated by their solar energy system. This can result in higher electricity bills and reduced savings for homeowners.

Net Metering

Net metering, on the other hand, is a system where homeowners are credited for the electricity they generate and feed back into the grid. The homeowner is only billed for the net amount of electricity they use, which is the difference between the electricity generated by their solar energy system and the electricity they consume on-site. This means that homeowners are able to offset their electricity usage with the electricity generated by their system.

One of the main benefits of net metering is that it allows homeowners to reduce their electricity bills by using the electricity generated by their solar energy system. By offsetting their electricity usage with the electricity generated, homeowners can save money on their monthly electricity bills and potentially even earn credits for excess electricity generated by their system.

However, one of the drawbacks of net metering is that the rates at which homeowners are credited for the electricity they generate can vary depending on the utility company and the location. This means that homeowners may not always receive a fair rate for the electricity they generate, which can impact the overall savings and benefits of net metering.

Comparison

When comparing gross metering and net metering, it is important to consider the specific needs and preferences of the homeowner. Gross metering may be a better option for homeowners who prioritize a guaranteed income stream and financial stability, while net metering may be more suitable for homeowners who want to reduce their electricity bills and maximize their savings.

• Gross metering provides a guaranteed income stream for homeowners, while net metering allows homeowners to offset their electricity usage with the electricity generated by their system.
• Gross metering may result in higher electricity bills for homeowners, as they do not receive credit for the electricity they use on-site, while net metering can help homeowners save money on their monthly electricity bills.
• The rates at which homeowners are credited for the electricity they generate can vary with net metering, while gross metering offers a fixed rate for all the electricity generated by the system.

In conclusion, both gross metering and net metering have their own set of attributes and benefits. Homeowners should carefully consider their specific needs and preferences when choosing between the two options. By understanding the differences between gross metering and net metering, homeowners can make an informed decision that best suits their individual circumstances.