SAE Power House Training Practice Exam 2025 - Free Practice Questions and Study Guide

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What is a 'net metering' system and its benefit to consumers?

It allows consumers to reduce their energy usage

It enables consumers with renewable systems to sell excess energy back to the grid

A net metering system is a billing mechanism that allows consumers who generate their own electricity from renewable sources, such as solar panels or wind turbines, to feed surplus energy back into the grid. The key benefit of this system is that it enables these consumers to receive credits on their utility bills for the excess energy they contribute. This effectively offsets their energy consumption during periods when their renewable systems aren't producing enough power, such as at night or on cloudy days.

This integration encourages the use of renewable energy, as it provides a financial incentive for consumers to invest in such technologies. By sending excess power back to the grid, consumers not only reduce their overall energy costs but also contribute to a more sustainable energy ecosystem. The potential for cost savings and the promotion of green energy solutions illustrate the significant advantage net metering offers to consumers.

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It makes electricity free for residential users

It is an outdated practice no longer in use

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