-Richard Sedano, Commissioner of the Vermont Department of Public Service
How Does Net Metering Work?
Unlike past approaches to renewable self-generation, net metering allows customers to generate and use power simultaneously. Prior to net metering, self-generators had to install expensive battery banks to store the power they needed or go through lengthy negotiations with their utilities to have them buy any extra power generated. With net metering, the meter now installed will measure electricity flowing in both directions, unifying a customer's power usage into one system.Once the net metering system is interconnected, any power generated by that system is fed into the utility grid. If a net metering customer uses more electricity than is generated, the customer will pay the utility only for the difference. If the system generates more electricity than the customer used that month, the utility records a credit for the excess kilowatt hours towards the customer's next bill. If, at the end of the year, a net metering customer still has a credit on the bill that credit reverts to the utility. Net metered customers must pay the same customer service charges and other monthly fees required of other consumers.
Source: http://www.state.vt.us/psd/ee/ee20a.htm