What is Net-Metering?
Today, the majority of homes with solar systems are connected to the utility grid through a meter. The flow of electricity is in two directions, giving homeowners the ability to draw electricity from the grid if needed and to give back to the utility grid any excess electricity their homes produce. This is called net metering.
Under net metering, any excess electricity produced by your solar energy system is delivered back into the utility grid, effectively spinning your meter backwards. Your meter spins forward when your solar energy system is not producing all of 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.
A. “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 small 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. Without net metering the excess production is sold to the utility at a much lower price. 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), the utility purchases that excess electricity at the wholesa
Net metering uses the excess electricity produced by a wind turbines and solar electric systems to 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 price. The excess energy is metered using an additional meter that must be installed at the customer’s expense. Net metering simplifies this arrangem
Customers who install renewable power generators up to 2 megawatts, such as solar panels or windmills, can interconnect them with the electric grid. Excess energy generated by the customer and sent to the grid will be subtracted from energy used from FPL for the month. If the customer generates more energy than he or she uses, the energy credit will carry over to the next month until the credits are depleted. At the end of the year, any excess energy generated will be paid out to the customer at the “As Available” rate.
