Net metering is a program that allows homeowners with solar to sell back their unused solar energy to their utility company. This means that homeowners with solar can actually make extra money (in the form of credits on your electric bill) for producing solar energy. It’s one of the easiest ways to see your monthly electric bill drop and one of the many benefits of switching to clean renewable energy.
Net metering, or net energy metering (NEM), is a system used by electric utility companies that determines your electric bill based on your net power consumption. Net metering is a tremendous advantage for homeowners and business owners who produce excess solar power.
Net metering allows you to be fully credited for the electricity that your panels contribute to the grid. This means you’ll only be charged for the difference between the amount of electricity you use vs. the electricity produced. Oftentimes, this can create zero or negative electric bills, depending on your particular energy consumption and production.
The great advantage of having solar panels installed is that you can produce your own electricity easily due to the readily available resource of the sun.
Your home will use the electricity your panels produce to power your home. Any excess electricity will get sent to the utility grid. During times when your solar panels are not producing energy, such as at nighttime, your electricity meter will actually run backward, drawing energy from the electric grid to power your home.