NET METERING

What is net metering?

Net metering is a method of electric invoicing that allows you to store excess energy generated by your solar panels on the grid. Net metering credits you for the energy your solar panels produce that you don't use.

Why does it exist?

Net metering serves two purposes: first, to stimulate wider solar adoption across the country; and second, because utilities–and the entire power infrastructure–benefit from the influx of low- to no-cost solar energy onto the grid. Solar energy can help offset the cost of obtaining electricity from other sources, particularly during the summer months.

How does it work?

When your solar panels produce more electricity than you consume during the day, the excess is routed back to the grid, effectively running your electric meter backwards. When you use more electricity than your solar panels produce, whether it's at night or on cloudy days, you pull power from the grid, which moves your meter forward. You are billed for the difference between what you put on the grid and what you take off the grid at the end of the month or year, thus "net metering."

How does it help you save money?

Net metering is the best solar policy, since it allows you to store every unit of energy you generate with solar and utilize it from the grid at a later time. In fact, by offsetting their need for electricity from the grid via net metering, you can save tens of thousands of dollars over the lifespan of their solar panel installation.

While net metering is not the only way that utilities compensate homeowners for going solar, it is by far the most common and effective solar policy.