Net metering is a system that allows homeowners with solar panels to receive credits on their utility bill for any excess electricity they generate and send back to the grid. Here's how it works:

1. A solar panel system is installed on a building's roof.
2. The system is connected to the utility grid through a bi-directional meter.
3. During the day, when the sun is shining, the solar panels generate electricity, which is used to power the building's electrical needs.
4. Any excess electricity that is not used is sent back to the grid.
5. The utility company records the amount of electricity generated by the solar panels and the amount of electricity that is sent back to the grid.
6. At the end of each billing cycle, the homeowner is credited for any excess electricity that was sent back to the grid, reducing their overall electricity bill.
7. When the solar panels are not generating enough electricity to meet the building's needs, the homeowner can draw electricity from the grid, as usual.

Net metering is designed to promote the widespread adoption of renewable energy and to encourage homeowners to generate their own clean electricity.