01/10/2017
Net metering (or net energy metering, NEM) allows consumers who generate some or all of their own electricity to use that electricity anytime, instead of when it is generated. This is particularly important with wind and solar, which are non-dispatchable. Monthly net metering allows consumers to use solar power generated during the day at night, or wind from a windy day later in the month. Annual net metering rolls over a net kilowatt credit to the following month.
Net metering policies can vary significantly by country and by state or province. Most net metering laws involve monthly roll over of kWh credits, a small monthly connection fee,[1] require monthly payment of deficits (i.e. normal electric bill), and annual settlement of any residual credit. Unlike a feed-in tariff (FIT),
