Skip to Content
chevron-left chevron-right chevron-up chevron-right chevron-left arrow-back star phone quote checkbox-checked search wrench info shield play connection mobile coin-dollar spoon-knife ticket pushpin location gift fire feed bubbles home heart calendar price-tag credit-card clock envelop facebook instagram twitter youtube pinterest yelp google reddit linkedin envelope bbb pinterest homeadvisor angies
Net metering allows residential and commercial customers who generate their own electricity from solar power to sell the electricity they aren’t using back into the grid.

Net metering diagram

Net Metering Explained

Net metering is a billing mechanism that credits solar energy system owners for the electricity they add to the grid. For example, if a residential customer has a solar system on their roof, it may generate more electricity than the home uses during daylight hours. If the home is net-metered, the electricity meter will run backwards to provide a credit against what electricity is consumed at night or other periods when the home’s electricity use exceeds the system’s output.

Customers are only billed for their “net” energy use. On average, only 20-40% of a solar energy system’s output ever goes into the grid, and this exported solar electricity serves nearby customers’ loads.

Giving Customers Control Over Their Electricity Bills

Net metering allows utility customers to generate their own electricity cleanly and efficiently. During the day, most solar customers produce more electricity than they consume; net metering allows them to export that power to the grid and reduce their future electric bills.

Electric bill after going solar
With solar, homeowners can actually gain credits for their utility bill.

Creating Jobs & Encouraging Private Investment

Net metering provides substantial economic benefits in terms of jobs, income and investment. Net metering increases demand for solar energy, which in turn creates jobs for the installers, electricians, and manufacturers who work in the solar supply chain.

Today, the solar industry employs more than 250,000 American workers in large part due to strong state net metering policies which have allowed the solar industry to thrive.

Protecting the Electric Grid

Unfortunately, some utilities perceive net metering policies as lost revenue opportunities. In fact, net metering policies create a smoother demand curve for electricity and allow utilities to better manage their peak electricity loads. By encouraging generation near the point of consumption, net metering also reduces the strain on distribution systems and prevents losses in long-distance electricity transmission and distribution.

There are a wide variety of cost-benefit studies around the country that demonstrate the value solar provides to local economies and the electricity system as a whole.

Net Energy Metering is performed on a 12-month billing cycle. Typically, the utility will send a statement each month with a projected total if the 12-month cycle ended at that month. These statements will show you how much energy is consumed and how much energy is generated. The amount generated will be subtracted from the amount consumed and that will be your net consumption or generation for that month.

To learn more about Solar, visit our full page for more details.

Act today, so you can also take advantage of the 30% tax credit while it is still available!

Please contact us today to schedule an in home consultation!