Net metering is a program offered by a utility company for customers that install renewable energy systems to generate their own electricity that can be used to offset a portion of the electric energy provided by the utility. Any excess energy generated by the customer during the monthly billing cycle would be sold to the utility company and credited to the customer.
In order to utilize net metering, the customer’s generation must be interconnected to the utility grid with a meter that can register the amount of electric energy that is used and produced during the billing cycle.
What is interconnection?
Interconnection is the physical connection of the customer’s generation source to a utility’s distribution line.
The interconnection required with net metering allows the electric utility to provide the extra electricity or back-up power that self-generation may need. It also assures that safety protocols are adhered to for the protection of the utility linemen.
Interconnection standards vary from utility to utility. Check with your local utility company for the standards required to execute a net metering agreement.
Who can use net metering?
Any customer – residential, commercial or industrial – that is able to generate their own electricity through renewable energy sources or microturbines that can be interconnected to the utility grid.
Net Metering Benefits
- Generate your own electricity and reduce your electric bill
- Protect against future rate increases
- Produce electricity from free sunlight and watch your meter spin backwards
- Reduce the burning of fossil fuels contributing to a healthier environment
- Increase the value of your home
- Save money on your system purchase with state rebates and incentives
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