Net Metering

With net metering, customers with solar PV get credits for any additional electricity their panels send out on the grid. Excess electricity created by the solar system is sent back to the grid and adds a negative balance on the customer’s electricity meter or they can receive a credit. As a result, homeowners get a smaller electricity bill since they are only charged for the additional power they draw from the electric grid. With net metering, solar energy is more financially rewarding, it grows the use of renewable energy and it relieves the strain on power grids during busy hours for electricity. Using distributed generation helps stabilize the local electric grid, so fewer major changes are required for the transmission network. In your electric bill, you would see net metering giving you a credit for the energy used by the company. Many policies related to net metering are modifying; California, for instance, has released NEM 3.0 which lowers the rewards for sending electricity back to the grid and encourages customers to combine solar panels and battery storage to make self-use easier.