Net Metering

Net metering is a billing arrangement that allows individuals or businesses with renewable energy systems, such as solar panels, to receive credit for any excess electricity they generate and feed back into the grid. Under net metering, the energy meter "nets out" the electricity consumed from the grid against the electricity generated by the renewable energy system.

When the renewable energy system produces more electricity than is being consumed on-site, the excess electricity is fed back into the grid, and the meter records this as a credit. This credit can then be used to offset the electricity consumed from the grid during times when the renewable energy system is not generating enough power, such as at night or during periods of low sunlight.

Net metering allows individuals or businesses to reduce their electricity bills by effectively using the grid as a virtual battery. It provides an incentive for the installation of renewable energy systems by enabling the owners to offset their electricity costs and potentially earn savings over time.

It's important to note that the specific regulations and policies related to net metering can vary between countries and regions. The eligibility criteria, credit values, and program details may differ depending on the jurisdiction.