Solar Lattice

Concept

Net metering

ID
concept:net-metering
IRI
https://solarlattice.org/kb/concept/net-metering
Status
active
Also known as
NEM, net energy metering
Category
Market
Concept kind
market

Net metering is a utility policy incentive that lets a customer offset on-site electricity use with their own renewable generation, such as a PV system. Any solar energy the site does not use flows into the utility grid, and the owner gets a credit for it on the monthly bill. The utility meter records both the energy taken from the grid and the energy fed into it, and the customer pays only for the net energy consumed. On an Eversource net meter, register ID 04 shows the energy the utility delivered and ID 10 shows the excess generation the utility received. The generator must never be connected inside the meter socket or the instrument transformer compartment. The most common approach gives full one-to-one credit for each kilowatt-hour. Monthly surplus credits carry forward, and an annual true-up compares total consumption with total generation. At true-up, depending on the utility, leftover excess may be paid at the utility's avoided cost, lost, or carried into the next year. Policies vary widely, so get the local utility's net-metering policy before sizing a system. Net metering only covers offsetting on-site loads, so net-metered systems at sites with small loads tend to be moderate in size. Variants include remote, virtual, neighborhood and agricultural net metering. California Rule 21 separates NEM-1 and NEM-2 requests from the newer Net Billing Tariff.

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Claims

related_to

c1 drafted · lead Energy meter

The utility net meter records energy drawn from the grid and energy fed into it. Billing is based on the net amount consumed.

c2 drafted · lead Behind-the-meter system

PV generation offsets the customer's consumption behind the meter, and only the excess is exported.

c3 drafted · lead Distributed energy resource

Scope: regions New York proposed

In New York State, solar PV qualifies for net metering as a distributed generation technology.

c4 verified · fact Virtual net metering proposed

Variant for multi-tenant, multi-meter and affordable housing properties under California Rule 21 interconnection agreements.

verified by: review-workflowverified on: 2026-10-24review note: support check: partial - Forms show virtual net metering for multi-tenant, multi-meter and affordable housing under NEM and Rule 21, but the passages don't define it as a net metering variant explicitly; mostly implied.

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