Lesson 5: Understanding Net Metering

Discover how your utility grid acts as a massive, free solar battery.

What is Net Metering?

Net metering is a billing mechanism that credits solar energy system owners for the electricity they add to the grid. When your solar panels produce more electricity than your home is using during the day, the excess is sent back to the utility grid.

How the Bi-Directional Meter Works

Your traditional utility meter only spins forward. When you install solar, the utility company replaces it with a bi-directional meter. This meter tracks two things:

1. Electricity you import from the grid (at night).
2. Electricity you export to the grid (during a sunny day).

Banking Your Credits

The exported energy generates credits on your utility bill. At night, when your solar panels are inactive, you pull electricity from the grid. Instead of paying for this electricity, you use the credits you generated during the day. In many states, these credits roll over month-to-month, allowing you to build a massive surplus in the summer to use during the winter.

Note: Net Metering policies vary drastically by state and DISCOM. Always check your local regulations.