What is net metering and how does it work
Net metering is the utility billing practice of recording the excess energy generated by a solar installation and applying it to the customer's bill as credit toward energy drawn from the grid.
Home Industries and Topics Electrical Energy Demand Side Management Customer Generation Net Energy Metering and Net Billing Net Energy Metering and Net Billing Key Information California is the national leader in customer-sited solar, with more than one-third of U.S. capacity as of September 2023.
Net Energy Metering
Net Energy Metering (NEM) is a service element that can offset your electric consumption by selling back the excess electricity generated from your solar system using a single net meter. A net meter is a bi-directional meter that measures the flow of electric energy in both directions.
What is Net Energy Metering (NEM)? Net Energy Metering (NEM) is a rate option that allows customers with an eligible renewable generating system to receive a credit for the surplus electricity supplied to the electric grid. This credit is applied to their energy bill to offset all or part of the costs associated with the energy consumed each month.

As we can see from the illustration, Net Energy Metering has many fascinating aspects to explore.
Net metering
Net metering (or net energy metering , NEM) is an electricity billing mechanism that allows consumers who generate some or all of their own electricity to use that electricity anytime, instead of when it is generated. This is particularly important with renewable energy sources like wind and solar, which are non-dispatchable (when not coupled to storage). Monthly net metering allows consumers ...
To encourage NEM uptake, the NEM 2.0 was introduced on 1st January 2019, and the true net energy metering concept was adopted, allowing excess solar PV generated energy to be exported back to the grid on a "one-on-one" offset basis.
Net Energy Metering (NEM)
Definition Net Energy Metering (NEM) is a system that helps customers reduce their dependence on fossil fuels by allowing them to use energy generated from renewable sources, like solar panels or wind turbines, to offset their electricity usage from the grid. It also allows customers to receive credit for the excess energy they generate and return to the grid, making it cost-effective to ...

Moving forward, it's essential to keep these visual contexts in mind when discussing Net Energy Metering.
Net Energy Metering Explained
Net Energy Metering Explained Installing renewable energy sources on your property is a great way to reduce your dependence on fossil fuels. On-site solar panels and wind turbines can also help you reduce your energy bill; if you generate enough electricity, Clean Energy Alliance might even pay you for the energy that you generate for the grid.
Confused by solar buyback rates? We explain how net metering works, the difference between net billing, and how to maximize your excess generation credits in 2025.