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Why would I want to have Net Metering?

Net Metering Basics

Why would I want to have Net Metering?

  • Net metering can lower a customer’s electricity bill by reducing the amount of electricity that the customer buys from the distribution company. Net metering allows customers to receive credits for any electricity that they generate but do not use. Some customers get involved in net metering because of an interest in the environment and renewable energy.

What is Net Metering?

Net Metering Basics

What is net metering?

  • Net metering allows customers of electric distribution companies to generate their own electricity in order to offset their electricity usage.  All customers are eligible for net metering.  Common examples of net metering installations include solar panels on a home.  These installations are connected to an electric meter that measures the net quantity of electricity that the customer uses (“retail meter”).  The retail meter spins forward when the customer uses electricity from the distribution company, and it spins backward when the customer generates excess electricity (thereby “exporting” electricity to the electric grid).  A special retail meter (also called the “net meter”) is required to allow for the “netting” of usage and generation, especially when there may be exporting of electricity.