Definition[]
Net metering is a billing mechanism that credits solar energy system owners for the electricity they add to the grid.
Overview[]
Net metering programs serve as an important incentive for consumer investment in distributed energy generation, enabling customers to use generation on their premises to offset their consumption by allowing their electric meters to turn backwards when they generate electricity in excess of their demand.
Net metering is achieved using a single, bi-directional meter — i.e., two-way communication — that can measure and record the flow of electricity in both directions at the same rate.