Net Metering

What is net metering? Net metering is a state policy by which you can run your meter backward and sell excess power you generate to the utility at residential (what you pay for energy) prices. The meter runs forward when you are getting power from the grid and backward when you are generating more than you need. Net metering effectively allows you to generate power and “store” on the grid until you need it at a later time. After selling the power, you obtain a credit with the utility and therefore when you need more power than you generate (at night for example), you can get the credited power free of charge. Note that net metering is not a federal policy but rather a state policy, and not all states have it. Furthermore, you have to satisfy a number of conditions such as being a small power generator (< 10 kW, for example) and be generating suitable power quality. More details about net metering can be found at Wikipedia or homepower.com.