Net metering is a billing system that allows electric customers to sell energy generated by a solar pv system on their home or business back to their electric utility. In effect this allows the utility to serve as a battery storing the energy generated from solar for use at a later date and time.
Every kWh produced in a given month within the threshold of total consumption will be credited at a dollar-for-dollar retail rate. Excess electricity in a given month will be credited at a wholesale rate. These credits can be used in subsequent months and do not expire.
Graphic: typical solar production curve showing summer overproduction in Midtown-Anchorage