What is Net-Metering?
“Net-metering” is a simplified method of metering the energy consumed and produced at a home or business that has its own renewable energy generator, such as a wind turbine. Under net metering, excess electricity produced by the wind turbine will spin the existing home or business electricity meter backwards, effectively banking the electricity until it is needed by the customer. This provides the customer with full retail value for all the electricity produced. Under existing federal law (PURPA, Section 210) utility customers can use the electricity they generate with a wind turbine to supply their own lights and appliances, offsetting electricity they would otherwise have to purchase from the utility at the retail price. But if the customer produces any excess electricity (beyond what is needed to meet the customer’s own needs) and net metering is not allowed, the utility purchases that excess electricity at the wholesale or ‘avoided cost’ price, which is much lower than the retail p
Net metering is a regulation that obliges utilities to allow excess energy generated by PV systems to be sent to the grid, thus spinning the meter backward. This arrangement allows all electricity produced by your BP Solar Home Solution® to be used to offset the remaining portion of your utility bill.
Net metering is an agreement between a power producer and the public utility that credits power users for electricity they send back into the grid. Under net metering, the user is paid the full retail rate for this power. For solar PV systems, this is important because extra power that is produced during the day can essentially be stored in the grid and used at night.
In California (and 33 other states) consumers can install grid-connected renewable energy systems under a program called “net metering”. With net metering, a system (using a meter that reads inflows and outflows of electricity) can sell any excess power that it generates to the utility to offset any consumption. It requires the utility to give full retail credit for electricity “sold back” in this manner. Net metering provides a simple, standardized method for connecting renewable energy systems into the electricity grid that ensures safety and power quality and encourages the use of renewable energy systems. (Visit www.dsireusa.org for a current list of states with net metering laws.
