Net metering is a billing arrangement that allows homeowners and businesses with solar panels or other renewable energy systems to receive credit for the excess electricity they generate and feed back into the grid. When the renewable energy system produces more electricity than is consumed on-site, the surplus is sent to the utility grid, and the customer’s meter runs backward, effectively "netting" the amount of energy produced against the energy consumed. This allows customers to offset their electricity bills, potentially reducing them to zero, depending on the amount of energy generated and used. Net metering policies vary by region, but they typically support the adoption of renewable energy by providing financial incentives and simplifying the integration of renewable energy systems into the broader electricity grid.
