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Solar modules mounted on the roof or grounds of your property convert sunlight into DC power.
This power is sent to a device called an inverter (or power converter) which converts the DC power from the solar modules to AC power identical to that being sent to you from the utility grid.
Power travels from the inverter to your electrical service panel (your breaker box). The power from the electrical panel will be distributed to any electrical loads in your home.
When excess power is produced by the solar, the power will flow into the grid through your electric meter. This will cause your meter to run backwards gaining you a credit with the utility company.
The utility grid automatically provides electricity when needed — at night and during the day when your demand exceeds your solar production.
Net metering is an agreement between the utility company and the customer. The agreement states that the utility company will credit your account for excess electricity you produce and feed into the utility grid.
If you choose to install a Time-of-Use Meter you can be credited for power at different rates; peak rates and off peak rates. Rates are dependent on the time of day, day of the week, and month of the year. Most people will benefit by installing the time-of-use meter. If all of the power being produced by your solar energy system is immediately being used, your meter will not “spin backwards”.