Net metering is a policy that allows solar PV system owners to receive full credit for the clean energy they generate. As the PV system produces electricity, the kilowatts are first used to meet their own demand. If the PV system produces more electricity than the owner needs, the extra kilowatts are fed into the utility grid and credited to the owner at their full retail value.
In “net metered” systems, the meter runs forward when the home or business is using more power than is generated by the solar panels. It runs backwards when the solar panels are generating more power than is being consumed on-site. The system owner receives a credit from the utility for the value of the excess electricity sent to the grid. In other words, the solar system owner is charged only for the “net” electricity consumed.