Net metering means that the utility company must credit you at retail rates for any and all unused or excess electricity that your system generates. Therefore, time-of-use customers will be credited peak rates for power fed into the grid during peak hours.

Net metering programs serve as an important incentive for your investment in a solar power system. Net metering enables you to use your solar generation to offset your consumption over a billing period by allowing your electric meters to turn backwards. When your solar system generates electricity in excess of your daily usage, you will receive retail prices from your utility company for the excess electricity that your system generates.

Net metering allows you to "bank" your energy and use it a different time than it is produced. It gives you more flexibility and maximize the value of your energy production.

Currently, net metering is only offered in about 35 states. For a more detailed description of state net metering policies and links to the authorizing legislation, see the DSIRE database, which is a project of the Interstate Renewable Energy Council funded by the U.S. DOE and managed by the North Carolina Solar Center.