Introduction

Net metering is a special metering and billing agreement between utilities and their customers, which facilitates the connection of small, renewable energy-generating systems to the power grid. These programs encourage small-scale renewable energy systems, ensure that customers always have a reliable source of energy from the grid during times when their renewable generators are not producing energy, and provide substantial benefits to the electric power-generating system, the economy, and the environment.

When a net metering customer’s renewable generator is producing more power than is being consumed, the electric meter runs backward generating credits. When a net metering customer uses more power than is being produced, the meter runs forward normally. Net metering customers are charged only for the “net” power that they consume from the electricity service provider that has accumulated over a designated period or, if their renewable energy-generating systems make more electricity than is consumed, they may be credited or paid for the excess electricity contributed to the grid over that same period.

By adopting net metering laws, states can encourage the installation and use of renewable energy generators. These systems help break our dependence on dirty fossil fuels, add to the diversification of our current energy portfolio, and help lessen the environmental footprint associated with electricity generation and consumption. In addition, it has been shown that customers with net metering systems tend to be much more aware of their energy consumption, so they usually consume less energy than the average retail customer. Net metering is also a way to increase the energy in the power grid to keep up with increases in demand during peak power-use times, which is particularly of interest to states facing power shortages.

Over thirty states have already recognized the environmental benefits of net metering and have passed legislation allowing the interconnection of small-scale renewable energy systems to the state’s power grid. For a comprehensive summary of state initiatives on net metering and other renewable energy incentives at the state level, visit the Database of State Incentives for Renewable Energy (DSIRE).

This web site offers the tools necessary for you to introduce and pass legislation to promote renewable energy through the use of net metering in your state. These tools include a sample bill, talking points, a press release, a fact pack, research, and other background information.