Defined term
Net metering
Net metering is a billing method that credits a customer for renewable electricity exported to the grid.
Definition
Net metering controls how surplus rooftop solar production is valued after the home has used what it needs in real time. Under full retail net metering, exported energy can offset imported energy at or near the retail rate.
Many states now use successor tariffs, avoided-cost export rates, time-varying credits, or caps. Those details can materially change solar payback even when the array size and sunlight are unchanged.