Net Metering

What is Net Metering

Net metering is a billing mechanism that allows solar energy system owners to receive credits for excess electricity they generate and send back to the grid. This is tracked using a bi-directional meter, which records both imported and exported power.

In simple terms, the net metering meaning is balancing the electricity you consume with the extra you produce through your solar rooftop net metering system.

Importance of Net Metering

The importance of net metering lies in its ability to reduce electricity costs and promote clean energy. It makes solar panel net metering systems more financially attractive, supports energy independence, and helps reduce strain on the power grid. Net metering policy encourages wider adoption of renewables and ensures fair compensation for clean energy producers.

Uses of Net Metering

Common uses of net metering include:

• Offsetting electricity costs in solar rooftop systems
• Banking energy credits for future billing cycles
• Supporting grid-connected clean energy setups
• Encouraging solar adoption in homes, farms, schools, and businesses
• Providing backup credit for cloudy days or nighttime use
• Enabling hybrid systems by combining solar with other renewables

Examples of Net Metering

Some practical examples of net metering are:

• A homeowner’s solar rooftop net metering system sends excess power to the grid during the day and draws from it at night, reducing the monthly bill
• A school uses solar panel net metering to power its operations and save on utility expenses
• A farm exports solar electricity during off-peak hours and uses credits to run irrigation later
• A business participates in net metering to meet sustainability goals while cutting costs
• A remote community uses a hybrid solar net metering system to stabilize energy supply
• Local governments promote net metering policy to encourage clean energy growth