Green Term Defined: Net Metering

Green Term Defined: Net Metering

Net Metering is a method of crediting consumers for the electricity that is generated on their home or business in excess of the total electricity that they have used.



Consumers that have solar or wind power on their home or business offset their electricity that they use with the electricity they are producing. If you were to generate more electricity than needed in a billing period then the electric meter turns backwards indicating net excess generation. This is how the electric company tracks your total energy usage. It is also how you take advantage of needed power at night when solar pv is not producing – you essentially are using the power grid as your battery and paying if you use more than you create.


Net Metering laws vary from area to area and the amount that the power company pays you for excess will vary. 

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