Net Metering

Definition: A billing mechanism that credits solar energy system owners for the electricity they add to the grid.

Relevance to home energy efficiency: Net metering allows homeowners with solar panels to offset their electricity costs by feeding excess power back into the grid.

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Benefits:

• Reduces electricity bills for solar panel owners
• Encourages adoption of renewable energy
• Helps balance grid load during peak hours

Drawbacks:

• Policies vary by state and utility company
• May face opposition from utility companies
• Future changes in policies could affect long-term savings

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Statistics: As of 2021, 41 U.S. states and Washington D.C. have mandatory net metering rules, according to the National Conference of State Legislatures.