Nettotering

Nettotering, often translated as net metering, is a billing arrangement in the electricity sector that allows a consumer who generates electricity on-site, typically with rooftop solar panels or other small-scale sources, to offset the electricity they consume from the grid with the electricity they produce. A single bidirectional meter records both imports and exports of electricity.

Under a nettotering scheme, the net energy used over a billing period is calculated by subtracting on-site generation from grid consumption. Depending on the policy, excess generation can be credited to future periods, rolled over for a set time, or compensated at a specific rate. The exact treatment—such as monthly or annual true-ups, rollover rules, and credit expiration—varies by country and jurisdiction.

Nettotering aims to promote distributed generation, lower consumer bills, and reduce grid losses by enabling customers to participate in electricity production. It is commonly applied to residential and small commercial installations and is often implemented alongside interconnection standards and metering requirements.

Critics point to potential cross-subsidization of non-generating customers, revenue implications for utilities, and policy uncertainty if programs change. Proponents argue that nettotering lowers barriers to adopting clean energy and stimulates investment in local generation and grid resilience. In practice, many regions are moving from simple net metering toward variant arrangements that incorporate time-of-use pricing, caps, or fixed tariffs for exported energy.

Nettotering is distinct from feed-in tariffs, where all generated energy is sold to the grid at a predetermined rate, regardless of the owner’s own consumption. The choice between these approaches reflects policy goals, grid needs, and market design considerations.