What is net metering and why is it so important?

Most solar panel systems are hooked up to the municipal electricity grid, and are therefore called “grid-tied” systems. Net metering ensures that the local utility will purchase any excess electricity that you produce. It is the system that utilities use to credit solar energy system owners for the electricity produced by their solar system that is put back on the grid. The excess electricity is commonly referred to as net excess generation, or NEG for short. With net metering, you only pay for the electricity that you use beyond what your solar panels can generate. If your system generates more than you need and you can supply it to the grid, the utility will credit you for this excess electricity. Net metering policies vary in each state so talk to your sales representative and do your research.