Virtual Net Metering

Virtual net metering (VNM) is when electricity is generated at a centralized location, such as a community solar farm or a commercial facility, that is a different place than where it’s consumed. It provides a billing mechanism that allows multiple participating consumers located somewhere else, to benefit from renewable generation even though not physically connected to it. A portion of the energy generated by the system is credited to each of the participant’s individual utility bills, based on the participant’s allocated portion. The energy credits offset their energy consumption and help reduce their electricity costs.

Some of the advantages of participating in VNM include:

• No space: VNM is beneficial when you don’t have space at your location or on your property to install your own renewable generation system. You can still benefit from renewable energy from clean energy generated elsewhere.
• Convenience: A virtual shareholder isn’t responsible for investing in, installing or maintaining a solar generation array or solar facility. When you sell your share of the energy production to the utility, you continue to consume electricity as usual without modifying your behavior or changing your third-party contract; a discount is automatically reflected in your utility bill.
•  Income: Participating in VNM is a revenue generating opportunity.
• Progress toward sustainability goals: The process of generating renewable energy helps promote the equitable distribution of clean energy and encourages further development of renewable generation projects throughout your local community. Renewable energy generation also supports sustainability initiatives by helping to reduce carbon emissions.

Depending on your location, there may be different eligibility requirements, participation rules, and billing options for VNM participation. If you’re interested in participating in VNM or partnering with a virtual off-taker, contact the team at Freedom Energy today! We can walk you through the process.