Net Metering, Feed-In Tariffs and Export Credits Explained
The economics of rooftop solar are dominated by how your utility values the electricity you send back to the grid. There are three broad models in use around the world, and knowing which one applies to you is essential before you sign a contract. Net metering is the friendliest arrangement. Your meter runs both ways. Every kilowatt hour you export is credited at the same retail rate you pay when you import. At the end of the billing cycle you owe the difference. In a full net metering regime, a system sized to your annual consumption can theoretically wipe out your bill. There are several flavours of net metering. True net metering nets everything at retail rates. Net billing separates the import and export sides and pays exports at a different, usually lower, rate. Virtual net metering allows multiple accounts to share the output of a single system, which is how community solar projects work in many jurisdictions. Ask your utility exactly which model applies to your account and ...