Net Metering

When you install a solar electric system to your utility company's wiring, any surplus energy produced by your photovoltaic (pv) system will be used by your electric company and you will receive a credit to be used during periods when the PV system is not producing enough to meet your needs. This means that the electric meter actually spins "backward" when power is flowing from the PV panels to the utility and spins "forward" when electricity is flowing from the utility into the building. At the end of the month, only the net consumption is billed. It is the amount of electricity consumed, less the amount of electricity produced. The electric company acts much the same as a battery, crediting the energy account for later use if you produce more than you use. This process is called "Net Metering".

As it stands right now, the utility companies won't pay you for excess electricity. Your solar electric system should be sized to provide you with about 90 to 95% of your electric usage if your budget for the system permits. When sizing a PV system, don't exceed your electric usage because you won't get any money back.

For more information about states with net metering legislation and incentives for renewable energy systems, refer to the Database of State Incentives for Renewable Energy (DSIRE) located at www.dsireusa.org.