Introduction

Solar energy has emerged as a transformative force in the global energy landscape, revolutionizing how we generate, consume, and compensate for electricity. At the heart of this transformation lies a critical policy shift: the transition from net metering to net billing. This change represents a fundamental reimagining of how solar energy producers are compensated and how utility grids manage distributed energy resources.

What Is Net Metering?

Net metering is a billing mechanism that allows solar energy system owners to receive full retail rate credits for the electricity they generate and send back to the grid. Under this model, when a solar panel system produces more electricity than a home consumes, the excess energy is credited at the same rate the homeowner would pay for electricity, effectively running the electric meter backward.

Key features of net metering include:

• 1:1 credit for electricity sent to the grid
• Simplified billing process
• Immediate financial incentive for solar adoption