What is Net-Metering?
Net-metering measures the difference between the electricity you buy from your utility and the electricity you produce with your solar energy system. Under net-metering, any excess electricity produced by your solar energy system spins your existing meter backwards, effectively storing the electricity until it is needed. Your meter than spins forward when your solar energy system is not producing all the electricity you are currently using. Your electric meter keeps track of this “net” difference as you generate electricity and take electricity from the utility grid.
Net-metering measures the difference between the electricity bought from the electric utility the electricity produced by the PV system. Excess electricity produced by the system spins the meter backwards. The meter spins forward when the solar system is not producing all the electricity currently being used. The overall result tracks the “net” difference as electricity is generated and sent to the grid and as electricity is consumed. During times when electricity is actually sold back to the utility, retail credit is typically given. The electric meter may spin backwards and forwards on a daily basis, but billing is only according to the net reading on the meter at the end of each month. Net metering allows you to get retail credit for electricity the solar electric system produces. If more power is produced than is used each month, the credits typically carry over for later use–usually for up to 12 months. At the end of the 12-month billing cycle, and if a credit remains, the utilit
Net-metering measures the difference between the electricity you buy from your utility company and the electricity you produce with your solar energy system. Any excess electricity produced by your solar energy system spins your existing meter backwards, effectively storing the electricity in the utility grid until it is needed. Your meter then spins forward when it is not producing all the electricity you are currently using and tracks the “net” difference as you generate electricity and take electricity from the utility grid.
A. Because of the Net Energy Metering (NEM) law, Californians are allowed to “sell” clean solar generated electricity to the utility at the same price at which it was purchased. This is fundamental to the economics of generating your own power and has been instrumental in the development of Distributed Generation (DG) of power. Without Net Metering, the utility would, as it has in the past, sell energy to you at retail but buy any energy from you at wholesale pricing. This is a huge benefit to anybody owning the property now and in the future as there are only a limited of Net Metered systems being allowed in any utility’s territory. The current statewide cap of 2.5% of any utility’s customer base is will soon be reached and NEM systems will no longer be available. The comparison to the HOV yellow stickers awarded to buyers of qualified hybrid vehicles would apply here. Only 60,000 of these stickers were issued and cars with the privileges of the “fast lane” commute are worth more than
