Net metering is a billing arrangement that allows solar system owners to receive credits for the excess electricity they generate and send back to the grid. When your solar panels produce more electricity than you need, the surplus is automatically fed back into the grid. The utility company then credits you for the excess energy, which can offset or reduce your future electricity bills.
For systems up to 100 kW, net excess generation is credited at a rate equal to 100% of the retail energy and transmission charges plus 25% of the distribution charge, and for systems greater than 100 kW, this rate is equal to the energy charge only.