How net metering works:
Generate renewable electricity for your own use while sending excess power to the grid for a credit.
Renewable energy generation
Renewable energy systems generate electricity from renewable sources. For example, solar panels convert energy from the sun into electricity. Your utility measures the electricity you use from, and send to, their grid.
Use energy production in real-time.
Your home uses electricity from the renewable energy system and your utility’s electricity grid when needed. When the renewable energy system produces more electricity than you can use, the excess electricity flows into your utility’s grid.
Production minus consumption = net bill
Your utility bills you for the electricity you consume from their grid, and gives you a credit on your electricity bill in return for the renewable electricity you sent to the grid. If you have credits left over, they can be carried over to future bills.
Netmetering eligibility is subject to local grid capacity constraints
To be eligible for net metering, you must enter into a net metering agreement with your utility to connect to their grid. As such, the system design must meet their technical, safety, and inspection requirements. Net metering agreements are offered on a first come, first serve basis because grid infrastructure only has a limited ability to process the incoming back-feed of energy.