What is Net-Metering?
Net Metering is the regulatory ability to get credit for electricity you generate with solar energy and send backwards through your utility meter. Exact provisions vary with each state, but the effect is to allow you to generate excess power during the day, and use it at night, without needing batteries.
For solar electric systems installed on a home or business that’s connected to the grid (i.e. “grid-tied”) net metering allows you to have only one electric meter which can spin forwards or backwards at the same rate. So, when the sun is shining, your solar system is producing electricity that can be directly used by your home or business, thereby offsetting the amount of electricity being purchased from the utility company. However, if the electricity is not immediately used, where does it go? (for example, many homes are empty during the day while everyone is away at work or school, etc.) During these times, the electricity is actually sold back to the utility company, causing your electric meter to spin backwards to give you RETAIL credit for it. So, your electric meter may spin backwards and forwards on a daily basis, but you’ll only be billed according to the “net” reading on your meter at the end of each month. In this way, net metering allows you to take advantage of, and get re
“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
