How does Net Metering work?

Net Metering is a special metering and billing agreement between you and your utility or electric service provider (ESP). Normally your electric meter spins forward as it measures how many kilowatt-hours of electricity you buy, and is read by your utility once a month.

A Net Metering agreement allows you to use the electricity you generate first, reducing what you would normally buy from your utility or ESP. If you generate more electricity than you use, the excess goes through your electric meter and into the grid, spinning your meter backward. Your meter shows the net amount, measured as the difference between the electricity you generate and the electricity you purchase from your utility or ESP.


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