What is Net Metering?

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June 29th, 2010 Solar Power

Net metering is the arrangement you can make with your power company to install an alternative power system and sell power back to them for use in the grid.

The way it works is this: when you produce more solar power than you are using, your meter runs backwards. This is when your power company buys the power back from you. The power company then typically sells this power onto another customer (usually your neighbour) and you pay less for your power bill.

There are different types of net metering arrangements. The better ones allow you to either get credited if you make more power over a year than you use. Other arrangements will give you a ‘floating credit’ for one or more years. That net credit is generally not carried forward after a specified period. In other words, you don’t get credited for a net annual excess of power.

The following states allow net metering:

Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii
Illnois, Indiana, Iowa, Kentucky, Louisiana, Maine, Maryland, Masachusetts
Michigan, Minnesota, Missouri, Montana, Nevada, New Hampshire, New Jersey, New Mexico
New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming
District of Columbia.

If your state isn’t on this list, check the DSIREusa website. There are other rebates from local counties and power companies that might be available.