If you install a PV system on your home’s rooftop, you may very well generate and put back into the grid more energy than you use. Net metering is a system designed to encourage private investment and implementation of renewable energy systems, and fair compensation for the value these systems provide all energy consumers.
This energy is put into the grid to be used where it is needed, building up a credit with the electric utility.
As the day progresses, heating and cooling needs may again use up energy more quickly than the PV system can produce. A cloud (or snowstorm here in Minnesota) may also come along, temporarily decreasing the energy production of your PV system. Energy is then pulled from the grid again, using up some of the energy credit generated earlier.
Later in the day, the sun may be setting, but our energy demands are not going down! Lighting, appliances, televisions, and more will continue to use electricity pulled from the grid, using up the energy credit accumulated during the daylight…