Net metering is a billing mechanism that allows homeowners and businesses with solar panels to sell excess electricity generated by their system back to the utility grid. When your solar panels produce more electricity than you consume, the excess is sent to the grid, and your electric meter runs backward. You receive credits for this excess energy, which can offset your electricity bill. Net metering policies vary by location, but they generally make going solar more financially attractive by allowing you to earn credits for the electricity your system generates.