Net metering is a practice that encourages consumer investment in on-site electric generators – typically small-scale, renewable energy technologies. When electricity is being generated and none is being consumed, net metering typically allows customer/generators to spin their meter backwards, in effect paying the customer/generator the retail rate for the electricity they generate but don’t immediately consume. If a customer generates more electricity than they consume over a period of time, they are typically paid for that net excess generation (NEG) at the utility’s avoided cost, or the wholesale rate. Two states, Minnesota and Wisconsin, stand out from the crowd because their net metering rules allow participants to be paid the going retail rate for the net excess electricity they generate for each billing cycle. Some states like New Jersey and Colorado allow projects up to 2 MW to use net metering. … Read More