If a homeowner’s wind turbine or photovoltaic system produces more power than needed, the extra power can be sent back to the utility company through the grid (electrical lines) and the homeowner can be credited or refunded by the local utility for that amount of power. This credit for excess power is called Net Metering.
A majority of the states in the U.S. and most utility companies have provisions for a homeowner to participate in a net metering program. A net metering agreement and installation will require special arrangements with the local utility company. Each state and utility company has different requirements and allows different sized systems to qualify for net metering. Some states and utility companies require the utilities to accept a limited amount of energy back from homeowners. Some utilities offer net metering even when it is not required or adopted by the state.
The amount of money paid for the excess energy generated through net metering can vary from one utility company to another. Many utility companies buy back the excess power at the same rate that the company charges the homeowner for the same quantity of power. Some utility companies charge a slightly higher rate to the homeowner than they buy back, because of extra charges for the grid connections and other administration costs of the program.
In most states, the excess power is applied to the next month’s homeowner's bill and is designated in kilowatt hours (kWh), the same as a normal electricity bill.
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