Net energy metering is like a deal between your solar panels on the roof and the power grid. When your solar panels make more electricity than your home needs, net energy metering gives you credits. Imagine a beautiful afternoon when your panels are creating kilowatts, but your fridge, TV, and air conditioner can’t use them all. Instead of wasting that excess power, it turns your electricity meter backwards, which adds up bill credits that you may use after dark.

This is when things start to get fun. The main purpose of this strategy is to cut down on electricity costs. It gives regular people the tools they need to make their homes into mini power plants. Most households use more electricity at night, thus net energy metering lets you retrieve that “banked” energy back from the grid at night, usually for the same amount of money you put in earlier. No need for difficult math or bank accounts; all you need to do is deduct on your monthly bill.

But saving money isn’t the only thing you need to do. This plan makes it more likely that families will buy solar panels. If you know you won’t lose money when the sun is high and your roof is operating properly, you’re more likely to put up those panels in the first place. And the whole community uses less fossil fuels when more people create their own electricity. What could be better than cleaner air, less stress on the grid, and reduced carbon footprints in the hot summer months?

Believe it or not, utilities also gain. When everyone turns on their air conditioning and the grid is overwhelmed, distributed solar helps smooth out those nasty power peaks. Utilities get more renewable energy from their own customers instead of relying on dirty “peaker” facilities. It’s like neighbors giving each other candy, but on a grander scale!

We can’t ignore the fact that the rules for net energy metering are different. Some states grant credits for retail rates, while others use the “avoided cost” rate, which is sometimes lower. Always check out the details of your area before you jump. More than 40 states in the US had some kind of net energy metering on the books as of 2024, although the rules are often changing.

Think about what’s coming up. The technology behind batteries is getting better. One day, devices that let you store solar power yourself could change everything. For now, net energy metering is still one of the simplest and best ways for people to join the renewable energy revolution. It’s an old idea with a modern twist, and it might be precisely what you need to get in touch with a solar contractor.