Glossary
Net Metering
Quick definition
A billing structure that credits exported electricity from onsite generation according to utility policy.
Technical Explanation
Net metering policies determine how exported solar generation is credited and how those credits apply to utility bills. Program terms and compensation methods vary by jurisdiction and utility.
Compensation can involve retail-rate, avoided-cost, or hybrid formulas depending on policy framework.
Practical Implications
Solar proposal assumptions should match current local policy details rather than generic national averages.
Examples
- • Receiving bill credits for midday solar export.
- • Comparing annual bill impact under current utility compensation rules.
Related Terms
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