NET METERING

A billing mechanism designed to credit owners of solar energy systems for the electricity they contribute to the grid. For instance, a residential customer with a rooftop PV system may generate more electricity than their home consumes during daylight hours. In a net-metered setup, the electricity meter runs backward, accumulating credits for periods when the home’s electricity use surpasses the system’s output, such as at night. Customers are billed only for their “net” energy use. As of 2023, typically only 20-40% of a solar energy system’s output is fed into the grid, benefiting nearby customers with the exported solar electricity.