Net Metering: Your Virtual Battery

One of the most confusing aspects of solar energy is the concept of "Net Metering," yet it is the primary reason why solar is financially viable. Think of the electric grid as a giant bank account for your energy.

How It Works

During the middle of the day (10 AM - 2 PM), your solar panels are producing maximum power. However, you might be at work, and your house is using very little electricity.

Instead of that excess power being wasted, it flows backward through your electric meter and onto the grid for your neighbors to use. Your meter literally spins backward (or counts down digitally), giving you a credit.

Using Your Credits

At night, when your panels are sleeping, you pull electricity from the grid to run your lights and TV. Instead of paying for this power, the utility company subtracts it from the credits you built up during the day.

This 1-for-1 exchange is called Net Metering. It effectively treats the grid as a free battery storage system.

Policy Changes (NEM 3.0)

It is important to check your state's current laws. Some states, like California, have moved to "Net Billing" (NEM 3.0), where the value of the energy you send to the grid is lower than the cost of energy you buy. In these states, adding a physical battery (like a Tesla Powerwall) is redefining the math to make sense again.