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Net metering is a program or billing arrangement that allows individuals and businesses with renewable energy systems, such as solar panels or wind turbines, to connect to the grid and receive credit for the excess electricity they generate. The basic concept of net metering is to measure the difference between the electricity a user consumes from the grid and the electricity they generate and feed back into the grid.

Installation of Renewable Energy System: Users install renewable energy systems on their properties, such as solar panels on rooftops or wind turbines.

Connection to the Grid: The renewable energy system is connected to the local electric grid, allowing users to draw electricity from the grid when their renewable system isn’t producing enough energy and to feed excess energy back into the grid when they generate more than they need.

Bidirectional Metering: A bidirectional meter is installed to measure both the electricity consumed from the grid and the surplus electricity sent back to the grid.

Credit System: When users generate more electricity than they use, the excess electricity is fed back into the grid, and they receive credits on their electricity bill. These credits can be used to offset the cost of electricity drawn from the grid when their renewable system isn’t generating enough power.