A net metering agreement is an administrative and billing agreement to track and bill the electricity you use from the grid and the electricity you send to the grid, allowing you to effectively run your electrical meter backwards to zero net electricity. This means if your renewable energy system produces more electricity during the day than you can use, you store that extra electricity on the grid until you need it later that night, on the weekend, or later that year. Once you’re connected to the distribution system, your local energy company will continue to read your meter and subtract the value of electricity you supply to the grid from the value of what you take from the grid. What you’ll see on your bill, therefore, is the net difference between these two amounts. If your residential solar panels supply more power than what you extract from the grid over the billing cycle, you’ll receive a credit toward future energy bills!