Net metering is a billing agreement that allows people with solar panels to sell excess electricity back to the grid. Essentially, it allows you to offset the cost of the electricity you consume from the grid by sending the excess electricity you generate from your solar panels. When the solar panels generate more electricity than needed, it is sent back to the grid and the electric meter spins backwards. When more electricity is needed than the solar panels generate, it is taken from the grid and the electric meter spins forward. At the end of the billing period, the utility company calculates the net electricity consumption, and any excess electricity is credited to the bill. This encourages the use of renewable energy sources and helps balance the electricity supply and demand on the grid. It also allows homeowners and businesses to save money on their energy bills.