The amount of electricity you use and the amount of electricity your system generates will often not match up. On sunny days your system may produce more electricity than your home needs, while on cloudy days you might use more energy than your system provides. Additionally, in peak summer and winter months your A/C or heater might consume more energy than your system produces, while lower heating or cooling needs in spring and fall can result in energy surpluses.

With Net Metering, when your equipment produces more electricity than your home needs (like during the day while you are at work), that excess power will flow back to the grid. Your utility meter will measure the amount of energy you send back, and your utility provider will either subtract the difference from your monthly power bill or give you a credit for future power usage.

In short, net metering allows you to receive the savings of every kilowatt-hour of energy your solar panels produce, even at times when your system produces more than you consume.