Net metering is a program that allows homeowners and businesses with solar panel systems to sell excess electricity back to the grid, offsetting their electricity costs and promoting the use of renewable energy.

Here's how it works:

When a solar panel system generates electricity, the electricity is first used to power the home or business where the panels are installed. Any excess electricity is then sent back to the utility grid. This excess electricity is measured by a bi-directional meter, which can track both the electricity that is being used by the home or business and the excess electricity that is being sent back to the grid.

Under net metering, homeowners and businesses are credited for the excess electricity that they send back to the grid. This credit can then be used to offset their electricity costs when they draw electricity from the grid, such as during times when the solar panels are not generating enough electricity to meet their needs.

For example, if a homeowner generates 10 kilowatt-hours (kWh) of electricity with their solar panels on a sunny day but only uses 5 kWh of electricity in their home, the excess 5 kWh is sent back to the grid and credited to the homeowner's account. Later that evening, when the solar panels are not generating electricity, the homeowner can draw electricity from the grid to power their home. The 5 kWh credit from earlier in the day will be used to offset the 5 kWh of electricity that the homeowner draws from the grid, resulting in a lower electricity bill.

Net metering policies and regulations vary by state, so it's important to check with your local utility company to understand the specific rules and regulations in your area. Some states have limits on the amount of excess electricity that can be credited or require homeowners and businesses to pay additional fees to participate in net metering.

Overall, net metering is a great way to promote the use of renewable energy and incentivize homeowners and businesses to invest in solar panel systems. By providing a credit for excess electricity generated by solar panels, net metering helps to make solar power more accessible and affordable for everyone.