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- What is net metering? Net metering allows for the flow of electricity both to and from the customer—typically through a single, bi-directional meter. When a customer’s generation exceeds the customer’s use, electricity from the customer flows back to the grid, offsetting electricity consumed by the customer at a different time during the same billing cycle. In effect, the customer uses excess generation to offset electricity that the customer otherwise would have to purchase at the utility’s full retail rate. Net metering is required by law in most U.S. states, but these policies vary widely. For more information, go to the Database of State Incentives for Renewables & Efficiency website.
- What are interconnections standards? Interconnection standards specify the technical and procedural process by which a customer connects an electricity-generating system to the grid. Such standards include the technical and contractual terms by which system owners and utilities must abide. State public utility commissions typically establish standards for interconnection to the distribution grid, while the Federal Energy Regulatory Commission (FERC) has adopted standards for interconnection to the transmission level. Many states have adopted interconnection standards, but some states’ standards apply only to investor-owned utilities—not to municipal utilities or electric cooperatives. (Several states have adopted interconnection guidelines, which are weaker than standards and generally apply only to netmetered systems.)
- Is net metering/interconnection an option from my electric utility or electricity provider? Contact your utility for this information.
- Is there an application and fee associated with net metering and/or interconnection? Some power providers charge fees. This will vary with each entity and can run from a few dollars to several hundred. Check with your provider for applicable fees.
