Net metering is a billing arrangement where customers who produce their own electricity, via solar panels or other renewable energy systems, can receive a credit on their electric bill for any extra electricity produced.
Net metering allows customers’ electric meters to turn backward when electricity is generated in excess of the demand. The electricity produced displaces electricity that would otherwise have to be purchased, thus lowering the customer’s electric bill. Also, if more electricity is produced than consumed, the extra electricity would go back into the grid, resulting in a credit on the bill.
For more information on net metering please read the following documents.