When a PV (Photovoltaic solar energy) system is installed on the roof of a home or business, it is tied into the electrical grid and monitored. The process of monitoring how much electricity is generated is called net metering. The amount generated is compared to the amount of electricity used by a home or office. If the solar panels produce less electricity than is used, the consumer is charged for the difference by the utility company. However, the PV panels can also produce more energy than is used.
Extra electricity contributed to the grid is tracked so that the customer with the solar panels can draw on those energy credits, as if from a bank, on days when their solar energy system is producing less electricity. For instance, on a stormy day, heavy cloud cover may obscure the sun and reduce the amount of energy captured by the panels.
Utility consumers will usually draw on their electric credits at night, too. When the sun goes down their PV panels idly wait for the sun to come back up in the morning. However, in the night time when the solar panels are not generating electricity, the demand for electricity from the grid is usually down and the hourly rate for electricity also falls. In other words, the PV panels generally produce electricity during the peak hours of demand potentially saving consumers from the most expensive hours of electrical usage.
Solar panels also benefit the grid
There are scorching-hot days in the summer when everyone has their air conditioning running full blast. The strain on the electric grid is intense. The demand can even tax the grid beyond its capacity. In response, the utility companies may implement rolling blackouts in an effort to keep up.
Solar energy systems help. Each solar array is contributing to the grid and enhancing the grid’s ability to keep pace. Additionally, the PV systems are reducing demand, which can help keep the cost down for all consumers.