Florida Power and Light Net Metering is one of the largest utility programs in the United States, serving millions of customers throughout Florida. With consumers racing to embrace solar energy use in the Sunshine State, many householders are ultimately opting for the beneficial utility service of net metering.
It will credit the owners of solar energy systems against the excess electricity supplied back to the grid during those intervals when their systems are producing more than what is needed.
Find out the details on the FPL net metering program, how the program works, its benefits, and some key things to be aware of if you are a customer looking to take advantage of this great program.
What is Net Metering?
The net metering sends the message to residential and commercial owners of solar energy systems that there is the provision of credits when their system overproduces electricity into the power grid. S
uch an incentive mechanism would motivate the application of solar power in residential and commercial setups toward more customers benefiting financially from generating their own electricity.
So under net metering, when the solar panels on your house are producing more than you need, the excess gets pushed back onto the grid, and you build up credits on your electric bill.
Then, on days when you are not producing solar electricity on nighttime, cloudy days you apply those credits to pay off what you have pulled off of the grid.
How FPL’s Net Metering Program Works
It is quite straightforward to understand how net metering by FPL works and equally not much hassle for the customer to participate in. Here is a step-by-step breakdown of how the net metering process by FPL works:
Solar Energy System Installation:
To sign up with FPL’s net metering program, you will first have to install a solar energy system at your home or business. The system should be interconnected to the grid and meet FPL safety and performance standards.
Metre Equipment
After the completion of the solar system installation process, FPL will replace your existing old meter with a bi-directional meter that is able to measure not only the electricity that is entering your home from the grid but also the excess electricity coming back to the grid from the panels.
Monthly Billing:
FPL calculates your bill each month based upon the net difference between what you take from and give back to the grid. If you generate more than you consume, you receive a credit on your account that will apply to future bills.
Annual True-Up:
Note that FPL performs an annual “true-up” at the end of each billing year to settle your account. If you have generated excess credits during the course of the year, then FPL may, at its option, pay you for those credits at an “avoided cost” determined by the Public Service Commission.
This avoided cost is less than the retail rate due to the fact that the amount is credited against the reduction in costs FPL would have otherwise incurred to generate or purchase the electricity you generated.
Benefits of Florida Power and Light Net Metering
Participating in FPL’s net metering program does have a couple of advantages for homeowners and businesses that own solar energy systems:
Reduced Power Bills:
In cases of net metering, one reduces his/her electricity bills due to the credits earned from selling excess power produced by solar energy systems. Most of these solar energy systems produce excess electricity; thus, a user enjoys reduced power costs.
Maximized Return on Investment:
You can also increase your solar installation’s return on investment and shorten its payback period by selling extra electricity to the grid. With time, therefore, you become more financially viable in solar installation.
Energy Independence:
Net metering empowers you to become more energy-independent and thus enables the production and use of your own electricity. This can decrease your reliance on the utility and safeguard you against escalating energy prices.
Environmental Impact
You can make a difference in reducing GHG emissions by generating your own clean, renewable form of electricity and helping fight climate change. The advantage of net metering is that it fosters renewable energy production, which is a benefit that rewards you as a customer, aside from the environment.
Items to Note and Possible Downsides
Though FPL’s net metering program is of great value to customers, the following is a list of considerations combined with possible downsides:
Rate Structures:
Net Metering Credits: FPL provides net metering credits at the retail rate of electricity, but this can vary depending on the individual rate plan.
It is important to understand your rate structure and how net metering will likely affect your bills. For example, time-of-use rate plans might have a varying value of credit depending on the time of day your extra electricity is fed into the system.
Sizing Your System
It is further observed that the size of your solar energy system affects the effectiveness of net-metering: if it is too large, you end up generating more electricity than you can use or earn credits for, which extends the payback period; if it is too small, you may produce less electricity than enough to leverage the full benefits of net-metering.
Net metering policies are subject to change based on statewide legislation and utility company discretion.
You can contact a utility company about any changes that may affect the FPL net metering program you participate in, such as adjusted credit rates or altered customer eligibility requirements.
Grid Connection Fees:
Some utilities charge solar grid connection fees or a fee to participate in a net metering agreement. Although FPL currently does not have high fees for its net metering customers, one should always confirm whether there are any fees that will make the grid connection uneconomical.
Annual True-Up Payments:
The annual true-up process allows you to be reimbursed if there are any excess credits. The rate at which this reimbursement is paid is, however, normally lower than the retail rate.
The net effect will be that you are not being reimbursed at the full value of electricity that you have exported to the grid. Your total savings will be depleted by this.
How to Get Started with FPL’s Net Metering Program
If you are interested in taking advantage of FPL’s net metering program, here is how you can get started:
Evaluate Your Solar Potential:
Determine if your home or business is a good candidate for solar by evaluating your roof’s orientation, shading, and the amount of energy you currently use.
Contact a Solar Contractor:
Consult with a registered solar installer regarding how to best evaluate your property to determine which solar energy system is most appropriate for you. The installer shall also advise you during the permitting process and shall ensure that your system meets all FPL requirements.
Complete an Application:
Once your solar system is installed, an application to participate in the net metering program must be filed with FPL. Typically, the application consists of submitting information about the system and an inspection appointment.
Monitor Your System:
This will let you know how the system is performing when our system is approved, interconnected with the grid, through FPL’s online tools, or through your solar installer’s monitoring software. Monitor energy production and consumption to maximize your net metering benefits.
Conclusion
FPL’s Net Metering Program affords this opportunity to Florida residents and businesses in its value of reduction in energy costs, increasing energy independence, and allowing a contribution to a cleaner environment.
The more you understand how the program works and the careful factors that are involved, the better your decisions can be about your solar energy system and its use for the maximum, which is realized through net metering and so forth.
Whether one is an ongoing user of solar energy or is considering making the switch, FPL’s net metering program is a critical tool in tapping the power of the sun in the Sunshine State.
Get a Quote In case you are interested in integrating an inverter with a solar charger into your power system, do not hesitate to contact us today for your custom quote.