What is net metering?

Several US states have laws in place that require the utility companies to track both production and consumption of power at a customer’s home. When you install a solar power system on your rooftop or property, you will have a bidirectional meter installed that tracks the energy your system may produces during the day, as well as any consumption of power from the grid that is used at night or when it’s cloudy. If your system overproduces, the excess power is sent back into the grid and builds credits on your utility account to use when your system isn’t producing as much. This crediting process is called net metering.