The process of synchronizing the energy output from a solar power system with conventional utility power is known as an "on-grid" or "grid-tie" system. Grid-tie solar systems draw energy from the sun during the day, which an inverter converts to traditional utility-type electricity to supplement the power drawn from a utility's power grid.
With grid-tie solar systems, buildings and residences draw their power requirements from the solar energy first, which helps to reduce dependency on conventional utilities. Utility power provides any additional power required to maintain critical loads. Grid-tie solar power systems both lower electric bills and protect the environment.
Net Metering of Customer-owned Renewable power Generation – Any excess amount of energy produced by the solar system is fed directly back into the grid. This is made possible by the adoption of an Interconnection and Net Metering Rule by the Florida Public Service Commission. The rule states that systems ranging in size from 1 KW up to 2 MW are allowed to connect to the grid and distribute their excess energy thru net metering and receiving credit as their meter spin backwards during the process. The following month customers will see a credit of the distributed energy, which will offset some if not all of their electricity expense for that month.
How does Net Energy Metering work? At any time of the day, a customer's renewable energy system may produce more or less electricity than their home or business needs. When "excess" electricity is produced by the system, it will automatically go through the electric meter into the utility grid to be supplied to other customers. When this occurs the meter runs backwards. At other times of the day, the customer's electric demand may be higher than the renewable energy system is producing, and the customer relies on the additional power needs from the utility.
The benefit of net energy metering is the electricity generated by your system will be valued at the full retail electricity rates you pay for solar and small wind generators. This means that your system should save you more money than if you did not have net energy metering.