Net metering

Net metering

"Daily net metering" by Delphi234 is licensed under CC BY-SA 3.0

a billing mechanism that deducts the energy produced by a customer's approved energy system (often rooftop solar) from their monthly bill, and credits them for the excess electricity they supply to the grid.

Pros

Increases the value that can be extracted from an RE-DER investment.

Cons

It uses the grid in a way that is more beneficial for the system owner than for the greater grid.

Real Talk

Net metering has successfully increased RE investment; however, because it essentially uses the grid as a battery, it leaves utilities (and therefore non-RE owners) holding the bag. This is a short-term subsidy method that will need to be reevaluated in the future.

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