Policy
Net metering is a billing mechanism that allows residential or commercial customers with their own renewable energy generation (like solar panels) to send excess electricity back to the grid and receive credit for it. When the customer’s solar system produces more power than is being used (for instance, midday), the surplus flows into the grid, spinning the meter backward or accumulating credits. Later, when the customer uses more power than the solar produces (like at night), they draw from the grid and use those credits, effectively paying only for their “net” energy consumption. Net metering policies, set by states or utilities, make investing in solar more attractive by improving the payback through these bill credits.