Net Metering/Net Billing

{
  "id": "MLC-T-ENV-018455",
  "term": "Net Metering/Net Billing",
  "field": "Environment",
  "definition": "1. For electric customers who generate their own electricity, net metering allows for the flow of electricity both to and from the customer. 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 state policies vary widely. See also behind-the-meter.*\n\n2. A method of crediting customers for electricity that the customer generates on site in excess of their own electricity consumption. Customers with their own generation offset the electricity they would have purchased from their utility. If such customers generate more than they use in a billing period, their electric meter turns backwards to indicate their net excess generation. Depending on individual state or utility rules, the net excess generation may be credited to their account (in many cases at the retail price), carried over to a future billing period, or ignored.",
  "references": [
    "DOE Office of Energy Efficiency & Renewable Energy, Small Wind Guidebook Glossary at https://windexchange.energy.gov/small-wind-guidebook",
    "GPP Glossary"
  ],
  "url": "https://mlchart.com/terminology/environment/net-metering-net-billing/"
}