Net metering is a new concept where an instrument which has a special metering and billing agreement between utilities and their customers, facilitates the connection of small, renewable energy-generating systems to the power grid. This new programme is being developed to encourage small scale renewable energy systems to ensure that customers always have a reliable source of energy even when their renewable generators are not producing energy, and to provide substantial benefits to the electric power-generating system as well as the environment.
When a Net Metering client’s renewable generator is producing more power than is being consumed, the electric meter runs backward generating credits. Whenever the net metering customer uses more power than is being produced, the meter runs forward normally.
Net metering customers are charged only for the net power that they consume from the electricity service provider that has accumulated over a specific period. In other words, if their renewable energy generating systems make more electricity than is consumed, they may be credited or paid for the excess electricity contributed to the grid over that same period.
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