What is Net Metering?

By Scott Carlson
Net metering allows the owner of a solar electrical system to send excess electricity they have produced back towards the utility company, making their electric meter spin backwards. During the night the solar electric owner is using power from the grid (power company) making their meter go forward. The ultimate goal is to make the meter spin backwards as much as forward over a period of one year. So in essence you are not only selling the power back to the utility company at the same price they would have charged you, but you are using their utility grid as a means of storing your excess power at no cost to you. With Southern California Edison and San Diego Gas and Electric, you have the option to pay your utility bill once a year. These two utility companies will send you an updated statement each month, so you will know if you have a credit or debit in electrical usage with them. If after one year, you have produced more electricity than you have utilized (meaning your meter shows a lower number), the utility company gets to keep the extra electricity for free and you once again start afresh with your meters numbers (so do not install a larger system than you need). If your meter shows a higher number at the end of the metering year, then, you pay for the extra power you utilized. Presently, there is no cost effective option to have the utility company pay you for excess power beyond your needs.

This is a simplistic overview of net metering which in actuality can be quite complicated and ever changing. Please check with your installing dealer and your utility company for more information on the Net Metering Laws.