What is more profitable net-metering or net-billing?
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When you install rooftop solar panels, the government allows you to connect to the electricity grid in two main ways: net metering or net billing.
In net metering, your electricity bill is calculated based on the difference between how much power you use from the grid and how much extra solar power you send back to it. So if you produce more power than you use, your bill goes down or can even become zero.
In net billing, the extra solar power you send to the grid is sold at a fixed rate, which is usually lower than the rate you pay for electricity. You still pay for all the electricity you use from the grid, and you get a separate credit for the power you export.
Because of this, net metering usually saves you more money than net billing—especially if you’re a homeowner.