Energy Sector

Net metering provides a financial incentive for small businesses and homeowners to install electricity generation on-site, usually solar photovoltaic panels. Net metering allows for any electricity in excess of customer usage to be sold back to the utility. Rules vary by state and utility, but electricity flowing back to the grid is usually sold at the retail rate – higher than the wholesale rate earned by traditional generators. This is credited to the customer's bill to offset consumption from the grid when the customer's electricity demand exceeds their own generation.