When an on-site renewable energy generator is producing more electricity than can be consumed by the on-site end-user, the surplus electricity flows into the electric grid. When the end-user consumes more electricity than is being generated, the electricity that was put into the grid is then returned to the end-user. If a surplus remains at the end of the month, a credit will be issued in the end-user’s electric bill.

Common Terms

Net Metering:

Rules that essentially allow an electric meter to spin backwards allowing surplus electricity to enter the grid.

On-site Renewable Energy Generator:

A behind-the-meter renewable energy generating facility, such as solar photovoltaic (solar) system, that produces power intended for on-site use in a home, office building, or other commercial facility.

On-site End-user:

An electricity consumer who has a renewable energy generating facility at its location (behind the meter).