What is Net Metering?
Net metering policies and regulations vary by location, and not all utility companies offer net metering programs. Some areas have specific limits on the size of the renewable energy systems that can participate in net metering, while others may have caps on the total capacity of renewable energy systems eligible for net metering within their service areas.
How Does It Work?
Overall, net metering is designed to encourage the adoption of renewable energy systems by making it financially beneficial for individuals and businesses to generate their own electricity and contribute clean energy to the grid.
Net metering process
Step 1. Generating Electricity
When a solar energy system produces more electricity than the owner needs at a given time, the excess power is sent back to the grid.
Step 2. Bi Directional Metering
A bidirectional meter, installed by the utility company, measures both the electricity consumed from the grid and the excess electricity sent back to it.
Step 3. Credit For Access Electricity
The excess electricity sent back to the grid is credited to the owner’s account. This credit can then be used to offset electricity drawn from the grid when the renewable energy system is not producing enough to meet the owner’s needs, such as at night or during periods of low sunlight.
Step 4. Little To No Electric Bill
By offsetting electricity use with the credits earned through net metering, owners of renewable energy systems can reduce their electricity bills.