In a perfect world, your home’s solar system would precisely meet your electricity demands – nothing more and nothing less. In reality, there will be days when your panels produce more electricity than you use (sunny summer days), and days when they won’t produce enough (shorter, cloudier days and nights). When this happens, net metering and net billing allow you to essentially use the grid as storage; excess energy produced by your panels transfers to the grid in exchange for credits. In times when your solar system isn’t able to meet your energy needs and you need to pull electricity from the grid, you can use these credits to compensate.

In this article, we explain the difference between net metering and net billing compensation structures, different types of net metering and net billing, and where these programs are being offered across the country.