SOLAR
Net Metering

The extra energy produced by your solar array that goes back to the grid for others to use under an arrangement provided for by law is referred to as “net metering.” Net metering is established via state law. The electricity your solar system generates always goes first into your home or business for use. Then if you generate electricity during the day that you don’t use, it is sent on to the grid. Under the arrangement known as “net metering” you receive a one-to-one retail credit for this unused electricity. Then when the sun’s not out and you draw from the grid, you utilize this credit. In this way net metering essentially allows you to use your utility as a ‘virtual’ battery bank. More specifically, at the end of the billing period, your meter reading tells the utility how much electricity you sent to the grid, and how much electricity you drew from the grid. Your utility adds these 2 figures up. If you used more than you sent, you are billed and pay for those kWh. If you sent more than you actually used, that balance is called the ‘net excess generation’.