Net Metering is a billing method used by utility providers to compensate the owners of PV systems for energy they produce and send back to the grid.

When a rooftop PV system generates energy in excess of what is consumed, that energy is sent back to the utility grid, supplying power to other customers in the area. The producer of this excess energy is granted credits, which are used in turn to draw additional power back from the grid at no cost when usage outperforms the PV system’s production.

Since battery storage is not currently the standard, net metering is an extremely valuable mechanism for solar powered homeowners. Solar production is at it’s peak during the day when the majority of homeowners are at work, consuming the least amount of energy. By supplying energy back to the grid this time, it is possible to draw power back from the utility at night - when the sun is down and generation does not occur - at no cost until the production to consumption ratio equals out. Additionally, credits for unreclaimed energy rollover each month if the homeowner maintains a deficit, and will be converted to a financial credit once per year, in the fall.

For additional information on net metering and how solar works, please visit our How It Works page.