Sun Rays
PV panels convert sunlight into electricity
Inverter converts solar DC electricity to household AC electricity
Existing electrical system
Meter measures bidirectional kilowatt hour flow
Utility grid

How Net Metering Works

A solar electric system will change the dynamics of your relationship with the utility company. As a clean energy producer, you can "Net Meter" your electricity. In other words, if your solar system produces more energy than you are using at that moment in time, your meter will spin backwards, thereby crediting your account at the full retail rate. Conversely, when your energy needs exceed the system’s output, your meter spins forward.

As a result, your electric meter will measure the "net" difference and the utility company will then bill you for this amount.

Note: In June 2001, Hawai‘i became the 35th state to adopt a Net Energy Metering Law (NEM). From 2001-2009, 581 NEM systems were installed on the Island of Maui, producing approximately 2 percent of the island’s electrical generation. Currently, residents can net meter systems up to 100 kilowatts. A larger system can be installed; however, the customer will not be credited for energy that is not used on site.