Frequently Asked Questions

What is net metering?

Net metering is a method by which an energy customer measures energy produced at his / her home or business, which has its own renewable energy generator, such as solar panels or a small wind turbine. When the renewable energy system is generating electricity, the customer’s meter actually runs backwards, essentially offsetting the electricity that is provided to the consumer by the local utility. The customer is only billed for the “net” energy usage – the amount of electricity delivered to the consumer in excess of the electricity produced by the customer’s renewable energy system. In effect, net metering allows the interconnected customer to use the electrical grid as a storage battery. If the customer produces more energy than they consume in a given billing period, the excess can be credited to the customer for future bills.

Net metering laws also provide for simplified interconnection between a residential or industrial renewable energy generator and the local power grid. Since these interconnection requirements and procedures are, in many states, expensive and time-consuming, the simplification of these procedures in and of itself provides an incentive to greater residential and commercial use of small-scale renewable energy generators.

What are the benefits of net metering and why is it important?

Net metering provides individuals and businesses a financial incentive to install renewable energy systems at their homes or workplaces. These systems not only help diversify our current energy portfolio but also help encourage energy self-reliance – limiting the need for new and dirty, centrally-located power plants. This results in less dependence on dirty fossil fuels, cleaner air, and fewer pollution-related health hazards.

By ensuring a reliable backup connection to the power grid, users of local renewable energy systems are also guaranteed uninterrupted energy service even during those times when their renewable energy systems may not be producing enough energy to meet the needs of the home or business.

In addition, by allowing locally-generated electricity to be sold back to the grid when it is not being consumed by the customer, net metering customers receive the full value of their energy systems even if they are not at home when their renewable energy system is producing the most power. This kind of cost-incentive helps encourage the use of renewable energy – a practice that has wide-ranging economic, environmental, and public health benefits as discussed above.

Utilities can also benefit from a net-metering system by encouraging the generation of electricity during peak usage times to help offset the increased demand for energy, thus helping to avoid power shortages.

Can I really use my existing meter to take advantage of net metering?

As long as the meter you have is a two-way meter that flows backwards and forwards (which most do), you can use your existing meter.

How can I be sure that these small-scale generating systems are safe?

All small-scale generating systems are required to meet the safety standards established by the National Electrical Code. Owners may also monitor the safety of their systems using a UL listed inverter and other equipment, and a certified electrician.

What is the current status of net metering in my state?

Currently there are over 35 states that have some form of net metering provision. For a compilation of state programs see the summary table.

For more detailed descriptions of specific state programs visit the Green Power Network’s Net Metering page.