Net Metering
Utility policy crediting solar owners for excess electricity fed back to the grid at the retail rate.
Detailed Explanation
Net metering allows solar system owners to feed excess generation back to the grid and receive a credit (typically at retail rate) toward their electricity bill. This effectively means the grid acts as a battery. Net metering is under pressure in many markets as solar penetration grows: Netherlands is phasing out "saldering" by 2027; California replaced net metering with NEM 3.0 in 2023 (much lower export credit); Australia has stricter feed-in tariffs. Net metering economics heavily influence residential solar payback periods.
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Related Terms
Total lifetime cost of building and operating a solar plant divided by total lifetime energy generated.
Long-term contract to sell generated electricity at a fixed price; primary financing mechanism for utility solar.
Time required for a solar system to save enough money to offset its initial cost.