What is net metering?

Net metering is a billing mechanism that credits renewable energy producers for the excess power they feed into the grid, meaning that you can sell power back to the utility. Houses with solar energy systems may produce a lot of unused power during the day, and in states with net metering, the electrical meter will run backwards, crediting you for adding power to the grid, which is usually used by your neighbors. You only pay for your “net” energy use. Some states have passed laws making net metering mandatory, and others offer it as a voluntary program or as part of local regulations, but this can greatly affect your decision whether or not to go solar. See the DSIRE website Solar Policy Guide for info on your state.