Net Metering
A billing mechanism that credits solar energy system owners for the electricity they add to the grid. The excess power generated during the day offsets power consumed at night.
Why It Matters
Net metering is the single biggest factor in solar economics. In states with full retail-rate net metering, your solar system can effectively spin your meter backwards, dramatically shortening payback.
Real-World Example
Related Tools
Related Terms
Virtual Net Metering
A program allowing customers to receive bill credits from a remote solar facility they don't own, common in community solar.
Feed-in Tariff
A policy mechanism that guarantees a fixed payment rate for renewable energy fed into the grid, typically for a set period.
Grid-Tied System
A solar energy system connected to the utility grid, allowing you to draw power when needed and export excess generation.