Net metering is the process of measuring the difference between the electricity supplied over the electric distribution system (by your utility company) and the electricity generated by an eligible on-site generator and fed back into the distribution system.
Historically, the electric grid has been a series of one-way streets with power flowing from a power plant to your neighborhood, street, and eventually your home. However, the concept of net metering is changing the way poles and wires are used. Homeowners who generate more electricity than they need through home-installed solar, wind, or other systems can push that electricity back out through their meters as a surplus. The “net” in net metering refers to the process where a customer’s overall account bill now reflects both the power being used and the amount of power being generated.