Net metering is a billing arrangement that enables businesses (and homeowners) with solar energy systems to share their surplus electricity with the grid and receive financial credit in return. When a solar array produces more electricity than a facility consumes—typically during sunny, low-demand hours—the excess power is sent back to the utility grid. The utility then compensates the system owner with energy credits, usually at or near the retail electricity rate.
Later, when the solar system isn’t producing enough to meet the facility’s energy needs—such as at night or on cloudy days—those credits can be applied to offset electricity drawn from the grid. This creates a two-way energy exchange that effectively turns the utility grid into a virtual battery, balancing production and consumption over time.
By reducing or even eliminating net electricity costs, net metering greatly enhances the financial value of a solar investment. It shortens the payback period, improves long-term ROI, and encourages greater adoption of clean energy systems by making them more cost-effective and predictable for businesses of all sizes.
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