Category: 📘 Glossary & Acronyms
Net Metering
A billing mechanism that allows electricity customers who generate their own electricity to receive credits for excess electricity exported to the grid.
Under net metering programs, customers with small electricity generation systems—such as rooftop solar panels—can offset their electricity consumption with the electricity they generate.
If the customer generates more electricity than they consume at a given time, the excess electricity is exported to the grid and credited to their account.
These credits can then be used to offset electricity consumption during periods when the customer’s generation system is not producing electricity.
Net metering is typically used for distributed energy resources, particularly small renewable energy systems.
Customers remain connected to the electricity grid and continue to rely on the grid when their own generation is insufficient.
A home with rooftop solar panels may generate more electricity than it uses during the day. The excess electricity flows into the grid and is credited to the homeowner’s electricity account.
Last Updated: YYYY-MM-DD