Net Metering and You

If you are thinking of installing a renewable energy system, the term "net metering" is important for you to understand. Many small utility companies often misuse the term as a buzzword to prove they are committed to alternative energy, however true net metering requires a 1 for 1 credit for the kilowatt hour produced. A very common mistake is telling a customer that they are net metered when they are in fact not receiving full value for the clean electricity they have produced. If you buy electric service from Mid America or Alliant, you can receive net metering no problem. If you are on an REC however you must check to see if this is available. If it is not it will be in the future. There will be a day where kWh credits will be passed along as currency.

How does it work?

The meter spins forward when the customer uses electricity from an energy provider, and spins backward when the customer delivers excess electricity produced to the energy provider. Remember your home uses the electricity first so if you're consuming what the generator is producing, the utilities' meter doesn't even come into the equation since you are just offsetting what you would have consumed.