How Does Net Metering Work?

Net metering is a billing mechanism that credits solar array owners for the electricity they add to the grid. For example, if a residential customer has a PV system on the home’s rooftop, it may generate more electricity than the home uses during daylight hours. If the home is net-metered, the electricity meter will run backward to provide a credit against what electricity is consumed at night or other periods when the home’s electricity use exceeds the system’s output. Customers are only billed for their “net” energy use.

Investor-owned utilities (IOU) such as Alliant Energy and Mid-American Energy in Iowa are mandated by the Iowa Utilities Board to offer net metering. Rural Electric Co-Ops and Municipal utilities do not fall under the same IUB mandates so their policies vary from utility to utility.  


Receive the Latest Solar News Directly in Your Inbox.
Thanks! You'll get our newsletter straight to your inbox!
Sorry! Something went wrong!
Tags: production Utility net metering how net metering works

Related Questions & Resources