A utility company solar program is helping homeowners bank energy credits and save money, according to a recent YouTube video from the solar marketplace Energy Sage.
The program, called net metering, lets solar panel owners send excess electricity to the power grid in exchange for credits for later use.
"When you make more solar power than you can use, you send it to the grid and the utility gives you a credit on your bill," an Energy Sage spokesperson explains in the video.
Better yet, "you can spend those credits instead of paying cash for electricity. It's a big benefit for homeowners that smooths out the natural ebb and flow of solar power. You could also think of it like a solar buyback program or a solar bank."
As EnergySage demonstrates, a home's panels might generate 40 kilowatt hours of electricity during sunny daytime hours when residents aren't home using much power. With net metering, homeowners can tap those banked credits in the evening when they need more electricity.
Net metering makes solar power a smart financial move by maximizing the value of every kilowatt hour generated. "For every kilowatt hour of electricity you send out, you get one kilowatt hour worth of credit to your account with the utility company," according to the video.
The billing happens automatically; no manual tracking is needed. At the end of each cycle, the utility calculates the difference between energy sent to and pulled from the grid.
Not every homeowner can access this money-saving program yet. Availability depends on location and local utility policies. "Net metering is a fantastic incentive, but it's not available everywhere. It depends on what state you live in and sometimes which utility company you have," the video notes.
Solar power is an appealing solution for Americans looking to reduce their electric bills and make their homes run on cleaner energy. Adding panels can lower monthly costs while reducing a home's contribution to planet-warming pollution.
To learn if solar makes sense for your home, check out EnergySage's free tools to get quick installation estimates and compare quotes from local installers. Its website includes detailed guides breaking down costs, incentives, and net metering programs by state and utility company.
Join our free newsletter for easy tips to save more and waste less, and don't miss this cool list of easy ways to help yourself while helping the planet.
Cool Picks
!["It really is worth getting somebody … [who] build(s) that 20 years of service into their pricing."](https://www.thecooldown.com/wp-content/uploads/2025/02/SolarReviews-1.jpg?w=350)
