How Net-Metering Works

Net-metering is a mechanism through which a home or business can produce enough electricity to cover its power consumption across the year.

In simple terms, it involves the energy meter tracking how much power is purchased and sold.

When more power is generated than is being consumed within a home or business, the excess is sold back to the energy distribution company, and credits are provided at the off-peak rate.

Net-Metering Day

When more power is consumed than is being generated, the energy is purchased from the energy distribution company and in turn consumes the credits that have been earnt.

Net-Metering Night

Seasonality

Seasonality does affect how much power is generated and sold back to the energy company.

The strength of sunlight varies across the year, and the amount of power generated also differs accordingly. In winter, when the days are shorter, less power will be generated from solar. Conversely, power consumption is typically much lower outside of summer, as most households do not use air conditioners for heating. Although the power generation is lower, it is likely that the power consumption is much lower. As a result, with a net-metering system, it is likely that one will see negative bills during the winter and slightly higher bills in the summer.