Energy Metering

Net energy metering is a billing mechanism applied to electric energy. It allows consumers who have a renewable energy system that produces their own electric energy to send the surplus of the electricity production to the utility grid. In such situations, a consumer receives an energy credit. They can use this energy credit to their benefit when the amount of energy produced by, for instance, their photovoltaic system, is not enough to meet their current household energy needs. Then, the consumer can buy the electric energy at a rate minus the number of their credits accumulated at times when their renewable energy system was overproducing.

This method of compensation varies between states. Most of the time, a method based on a retail rate is used. When this method is applied, the quantity of accumulated energy credits offsets the energy consumed by the customer from the grid, generating a financial profit for the owner of a renewable energy system.

The answer to this question is no. The main reason for installing a smart energy meter is not to replace the traditional electric energy meter used by the utility for billing purposes, but to gain knowledge about the details of energy consumption in a household. These two metering devices can operate and measure energy simultaneously without conflict. The best way to get a smart energy meter is to install one in addition to the existing electricity supplier's metering device. This kind of energy metering setup keeps all of the features of the standard energy meter so that the utility company can still use its data when preparing the bills for their customer. At the same time, the additional smart energy meter provides a homeowner with valuable insight into energy efficiency and how to reduce their future energy bills.