Net Metering and Net Billing

The concept of net metering programs is to allow utility customers to generate their own electricity from renewable resources, such as small wind turbines and solar electric systems. The customers send excess electricity back to the utility when their wind system, for example, produces more power than they need. Customers can then get power from the utility when their wind system doesn’t produce enough power. In effect, net metering allows the interconnected customer to use the electrical grid as a storage battery. This helps customers get higher (retail) value for more of their self-generated electricity. In practice, net metering and net billing vary from state to state based on rules for such arrangements defined by the state. For information about your particular state visit the Database of State Incentives for Renewable Energy: www.dsireusa.org.