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.