Net Metering

What is net metering? Since today’s solar systems are all tied to the grid, if your solar panels generate more electricity than you use, the excess goes back to your utility company, spinning the meter backward and giving you a credit for the electricity your solar panel system generated. In simple terms, net metering allows residential and commercial customers who generate their own electricity from solar power to feed electricity they do not use back into the grid.

Net Metering Cuts Your Energy Costs

Net metering’s billing mechanism then credits solar energy system owners for the electricity they add to the grid. For example, if a residential customer has a PV system on the home’s rooftop, it may generate more electricity than the home uses during daylight hours. If the home is net-metered, the electricity meter will run backwards to provide a credit against what electricity is consumed at night or other periods where the home’s electricity use exceeds the system’s output. Customers are only billed for their “net” energy use. Exported solar electricity also serves nearby customers’ loads.

If you would like to learn more about net metering, and earning income from SRECS click here.

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