Net Metering

Net metering is a billing arrangement that allows Solar Energy system owners to receive credits for excess electricity they generate and feed back into the grid. Here’s how net metering typically works.Net metering provides an incentive for solar system owners by allowing them to offset their electricity consumption with the excess electricity they generate. It effectively allows consumers to “bank” their excess solar power and use it when their demand exceeds their solar generation.

Energy Generation

When a Solar Energy system produces electricity, it is first used to power the home or facility where it is installed. Any excess electricity generated beyond the immediate consumption is sent back to the utility grid.

Bi-Directional Metering

A bi-directional meter measures the flow of electricity both from the grid to the consumer (during times of low solar generation) and from the consumer to the grid (when the solar system generates excess electricity).

For every kilowatt-hour (kWh) of surplus electricity fed back to the grid, the solar system owner receives a credit on their utility bill. These credits are typically accumulated on a monthly basis.

During periods when the solar system is not generating enough electricity (e.g., at night or during cloudy days), the consumer draws electricity from the grid. The accumulated credits are then applied to offset the consumption, reducing or eliminating the cost of electricity from the grid.

At the end of a designated settlement period (often annually), any remaining unused credits may be reconciled. Depending on the utility’s policies, these credits may either be carried forward to the next billing period or paid out to the consumer at a predetermined rate.

Benefits of net metering includes: