What Is Net Metering?
net-metering
Net metering is a billing system used by electric utilities to credit customers who generate their own electricity, typically through the use of solar panels or other renewable energy sources. The system allows customers to sell excess electricity generated by their renewable energy systems back to the utility company, offsetting the cost of the electricity they purchase from the utility.
Under net metering, a special meter is installed that tracks both the electricity consumed by the customer and the excess electricity generated by their renewable energy system. The customer is credited for the excess electricity they produce, which is deducted from their overall electricity bill. In some cases, customers may even receive a payment from the utility company for the excess electricity they generate.
Net metering has become increasingly popular in recent years as more homeowners and businesses invest in renewable energy systems. It offers a number of benefits, including reduced energy costs, increased energy independence, and a more reliable source of electricity in the event of power outages.
However, net metering has also been the subject of some controversy. Some utility companies have argued that net metering unfairly shifts the cost of maintaining the electric grid onto non-solar customers, who may end up paying higher rates to cover the cost of maintaining the grid infrastructure. In some cases, utilities have attempted to reduce or eliminate net metering programs, which has led to pushback from renewable energy advocates.
Despite these challenges, net metering remains a popular option for many renewable energy customers. It provides an incentive for homeowners and businesses to invest in renewable energy systems, reducing their carbon footprint and helping to build a more sustainable energy system for the future.
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