Glossary
Net metering
A billing arrangement under which a utility credits a customer-generator for excess electricity exported to the grid, typically at a rate and under terms set by the utility's tariff or a state program.
Why it matters
Net metering (and successor programs such as net billing) determines the economic value of a
solar or storage system: what the utility pays or credits for exported power, whether exports are
limited, and how the meter tracks production and consumption. Terms change over time, and old
summaries often describe expired programs.
What to check
The current tariff or program in effect for the utility and customer class, the export rate or
credit, any capacity or enrollment limits, and the program's effective and expiration dates.
Jurisdictional variation
Net metering is defined by state law and utility tariffs, which vary widely and have changed
substantially in recent years.