Net metering is a regulatory policy that allows customers with certain types of distributed generation to net their electricity generation off their electricity consumption when calculating their electric bill. This results in the utility paying the retail rate for electricity generated and allows the customer to use the electricity at a different time from when it is generated. Most net metering rules are applied to customers with renewable energy such as rooftop solar, but they may also apply to other distributed supply sources such as small cogeneration, fuel cells, or electric storage.
In some regions, customers who generate more than they consume are paid for the excess energy. This is sometimes called net billing. The price paid for the excess energy is determined by the applicable regulatory rules.