Solar energy has become increasingly popular as a clean and renewable source of energy. With the advent of advanced technology, solar systems have become more efficient, accessible. While electricity prices are rising, prices of solar panels are going down and more homeowners are interested in using them. Before installing a solar power system, you must choose between two main types of system. Hybrid solar systems and NEM (Net Energy Metering) solar systems. So, which one is better? Obviously, there are pros and cons to both systems but before we make a comparison, let’s see what these systems are.
Net Energy Metering (NEM) Solar Systems:
NEM solar systems are a type of photovoltaic (PV) solar system that allows homeowners to generate their own electricity from the sun and send any excess energy back to the grid. In NEM systems, the excess energy is credited to the homeowner’s utility bill, potentially reducing their energy bills. NEM systems are connected to the grid, which provides a backup power source in case of low solar energy production or power outages. This type of solar system is popular due to its simplicity and ease of use, as homeowners do not need to invest in energy storage systems.
Hybrid Solar Systems:
Hybrid solar systems are a combination of photovoltaic (PV) solar panels and energy storage systems. That is why they are sometimes called Self-consumption battery connected solar systems. This type of solar system allows homeowners to generate their own electricity from the sun, store any excess energy in batteries, and use it during power outages or at night. Unlike NEM solar systems, hybrid solar systems provide homeowners with a backup power source and increased energy efficiency, reducing their reliance on grid-supplied energy and potentially leading to lower energy bills. Hybrid solar systems offer a flexible and reliable source of clean energy for homes and businesses.
Energy Storage:
One of the key differences between NEM and hybrid solar systems is the ability to store excess energy. NEM systems do not have the capability to store excess energy, meaning any unused energy is sent back to the grid. On the other hand, hybrid solar systems have the ability to store excess energy in batteries for use during power outages or at night, providing a backup power source.
Energy Efficiency:
Hybrid solar systems offer improved energy efficiency compared to NEM systems. By using stored solar energy instead of grid-supplied energy, homeowners can reduce their reliance on grid-supplied energy, leading to higher energy savings and lower energy bills. NEM systems, however, do not provide this advantage as any excess energy generated is sent back to the grid, potentially leading to energy being drawn from the grid at peak times, resulting in higher energy costs.
Cost:
Hybrid solar systems come with a higher initial cost but have the potential to result in significant cost savings for homeowners. By using stored solar energy instead of grid-supplied energy, homeowners can reduce their energy bills. NEM systems, however, have a smaller initial cost and reduce the energy bill through a buyback method offered by your energy provider.
Reliability:
Hybrid solar systems provide a reliable backup power source during power outages. With the ability to store excess energy, homeowners can rely on their stored energy to keep their lights on during a power outage. NEM systems, however, do not offer this level of reliability as they do not have the ability to store excess energy.
Contract:
NEM systems come with a contract with your energy provider, and you have to accept the terms and conditions that follows. This imposes some limitations such as how much energy you can produce using solar. In addition, in future there might be rate changes, and this might negatively affect your utility bill despite having solar systems in place.
Final thoughts
Like many other things in life this decision comes down to cost. If you can afford a higher initial investing, hybrid systems will provide you with a much better option. However, if you do not want to pay a higher cost and are comfortable with contract that comes with it, then NEM systems are your obvious choice.