When installing a grid-connected rooftop solar system, solar panels do not directly feed into batteries—they connect to the main utility grid. But how does your electricity company keep track of the power your panels generate versus the power you draw from the grid?
That tracking depends on your state’s solar metering policy: Net Metering or Gross Metering. Understanding the difference between these two systems can have a huge impact on your overall return on investment (ROI).
What is Net Metering?
Net Metering is a billing mechanism that records the net difference between the electricity your solar panels produce and the electricity your home consumes from the grid.