Net metering, also called "reverse metering," is the process whereby a photovoltaic (PV) array is installed on any structure--home, garage, church, school, business or factory--and the energy (electricity) is sent into the grid. ("Grid" is the term used for the power lines the utility company uses to distribute their product--electricity.)

This electricity turns back the electrical meter (hence the term reverse metering) and saves the ratepayer at the end of each month or, depending upon the service provider, at the end of the year.

Most residential systems realize a payback of the initial purchase cost in 5-7 years. For the larger commercial systems, 7-10 or more, depending on the initial outlay.

With photovoltaic (PV) systems, one size does not fit all. Consequently, when folks ask "What's it gonna cost for my 2,000 sqft home?" the answer seems evasive. It is not the size of the home or other structure--it is the amount of energy you wish to generate multiplied times the cost per kilowatt hour as set by your power provider. So, a small house could produce a lot of electricity given enough PV equipment and a large house only a little with a small PV system.

The following examples are meant to give you a good idea of how a system works and the component parts. As with all solar applications, please consult a professional before purchasing or installing any equipment. Safety is critical to all concerned. THIS IS NOT A DO-IT-YOURSELF PROJECT!

NOTE: For City Public Service (CPS) customers, see the E5 Rider that tells you what must be done to comply with their provisions for net metering in their service area.