This resource—which is one of many instrument summaries offered by the Clean Energy Finance Solutions Center—provides in-depth information about net metering and net billing, including best practices, case studies, design and implementation information, experts and training opportunities.
Net metering policies allow end users to offset retail electricity purchases using output from on-site distributed generation systems. Net metering policies also allow end-users to receive a credit or payment for the net excess electricity that is generated and exported to the grid. Net metering credits can be used to offset retail electricity purchased during other time periods. The value of net metering credits or payments is often pegged to the retail electricity rate. The value of the excess generation has been a topic of much debate and can have a significant influence on the payback period for distributed generation systems.