What is net metering?

Net metering credits solar owners for excess power they send to the grid; whether and how it applies depends on state and utility policies (DOE).

Net metering lets a grid-tied solar owner receive credit for excess electricity the system exports to the grid, offsetting power drawn at other times. The US Department of Energy's Homeowner's Guide notes that whether a solar system qualifies for net metering depends on the policies and practices of the state and electric utility, and advises checking availability in your service area, eligible system size and customer type, and the design of bill credits before committing. The practical takeaway: two identical systems on opposite sides of a utility boundary can have different payback periods purely because of the net-metering rules attached to each.