What is Net Metering

Blog Introduction:

Renewable energy is one of the most talked-about topics in recent years. Solar, wind, and water power are becoming more and more popular as people look for ways to reduce their dependence on fossil fuels and shrink their carbon footprints. But what exactly is renewable energy, and how can you make the switch to using it in your home or business?

Net metering is a key concept in understanding how renewable energy works. In short, net metering is the process of crediting solar energy system owners for the electricity they add to the grid. Essentially, net metering allows homeowners and businesses who generate their own electricity from solar panels to sell any excess power back to the utility companies.

Net metering is an arrangement between utility companies and solar energy users that allows solar customers to send solar energy back to the grid in exchange for credits on their utility bills. This compensation typically happens at the same rate that the customer would pay for energy from the grid, making it a fair arrangement for both parties.

In some cases, solar customers may even be able to sell their excess solar energy back to the utility company at a higher rate, providing them with an additional source of income. Net metering arrangements vary from state to state, but they are generally seen as a win-win for both solar customers and utilities.

Everything You Need to Know About Net Metering.

If you’re considering installing a solar energy system on your property, you’ve probably heard of net metering. Net metering is a policy that allows homeowners and businesses to sell excess renewable energy back to their utility company.

In this blog post, we will discuss everything you need to know about net metering, including how it works and who can benefit from it. We will also talk about the current state of net metering in the United States, and what changes may be coming in the future.

Net metering is a great way to offset the cost of your solar energy system, and it can also help you save money on your electric bill. In most cases, you will only be charged for the electricity that you use, net of any renewable energy that you generate.

This means that if you generate more renewable energy than you use in a given month, you may actually receive a credit on your electric bills. In some states, this credit can be carried over from month to month, meaning that you could potentially eliminate your electric bills entirely!

Not all utilities offer net metering, and the rules vary from state to state. In some cases, there may be limits on the size of your solar system or the amount of electricity that you can generate. It’s important to do your research and find out what the rules are in your state before you install a solar energy system.

Despite these potential limitations, net metering is still a great way to save money on your electric bill and support renewable energy. If you’re considering solar, be sure to ask your utility about net metering and find out if it’s right for you.

How Does Net Metering Work?

In order for a home or business to be eligible for net metering, the property must be connected to the main utility grid. Once that connection has been made, the solar panel owner can begin generating their own electricity.

If the solar panel owner generates more electricity than they need at any given time—for example, on a sunny day when everyone is at work or school—the extra electricity will flow back into the utility grid. The utility company will then record this excess electricity as a credit on the customer’s bill.

Conversely, if the solar panel owner needs more electricity than they are generating—for example, on a cloudy day or at night—they will simply draw that extra power from the grid. The utility company will then charge the customer for that extra power at their standard rate.

At the end of each billing period, the customer’s total credits and charges will be tallied up. If the customer has generated more electricity than they have used, they will receive a check from the utility company for the value of their surplus power. If they have used more electricity than they have generated, they will simply pay their normal monthly bill.

The most common type of net metering in the United States is “one-way” or “gross” metering. With this system, solar panels are connected to the utility grid, and when they produce more power than the home or business needs, the excess electricity flows back into the grid. The customer is only billed for their “net” energy use – the difference between the power they generate and the power they consume.

Some utilities offer “two-way” or “net” metering, which is similar to one-way net metering but with a few important differences. With two-way net metering, the customer’s meter tracks both the electricity they generate and the electricity they consume. If the customer generates more power than they consume, they receive a credit on their bill for the excess power. If the customer consumes more power than they generate, they are billed for the difference.

In both cases, net metering can provide significant savings for solar customers by reducing or eliminating their electric bill. In some states, net metering is mandatory for utilities, while in others it is voluntary.

Utilities typically offer different rates for the electricity they sell and the electricity that solar customers generate and send back to the grid. The “feed-in tariff” is the rate at which utilities purchase electricity from solar customers, and it is usually lower than the rate at which they sell electricity to their customers. The “net metering credit” is the rate at which utilities credit solar customers for the electricity they send back to the grid, and it is usually equal to the utility’s retail electricity.

In some cases, solar customers may be able to “roll over” their net metering credits to the next month or year. This means that if a customer generates more power than they consume in a given month, they can carry the credit over to the next month, and if they don’t use it all up, they can carry the credit over to the next year.

Solar customers should check with their utility to see what type of net metering they offer and what the rates are.

Net metering is just one way that solar customers can save money on their electric bills. There are also other incentives for solar, such as the federal solar tax credit, which allows solar customers to deduct 30% of the cost of their solar system from their federal taxes. Many states also offer solar rebates and other incentives, which can further reduce the cost of going solar.

If you’re considering going solar, be sure to check out all the available incentives in your state to see how you can save the most money.

Types of Net Metering Programs.

There are two different types of net metering programs: renewable energy credits (RECs) and kilowatt-hour (kWh) credits. RECs are separate from kWh credits and represent all environmental attributes associated with 1 megawatt-hour (MWh) of renewable electricity generation, including air pollution reduction benefits and carbon dioxide offsets. One REC equals 1 MWh of generation.

Utilities may offer either type of credit or a combination of both RECs and kWh credits. It’s important for consumers to understand which type(s) of credit their utility offers so there are no surprises when it comes time to receive payment for excess generation.


Net metering is a great way to save money on your electric bill while also doing your part to protect the environment. If you’re considering making the switch to renewable energy, be sure to do your research and find out if net metering is available in your area! And Contact with Safeway Renewable Solar Energy Company.