Net-Zero Metering

Net metering (also called net energy metering or NEM) is an electricity billing arrangement that allows customers who generate their own power — typically from rooftop solar — to send surplus electricity back to the utility grid and receive credit for it. The utility measures the difference between the electricity the customer draws from the grid and the electricity they export. When solar production exceeds consumption, the meter runs backward (or a credit accumulates); when consumption exceeds production, the customer draws from the grid normally. At billing time, the customer pays only the net amount.

Credits typically roll over month to month and may be settled annually. Policies vary by state and utility — some credit excess generation at the full retail rate, others at a lower wholesale or avoided-cost rate.

In This Home

The home has a net metering agreement with Duke Energy through its rooftop solar installation. Surplus solar energy exported to the grid offsets electricity costs, with the Solar system tracking production and the utility tracking the net balance.