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Net metering enables 1:1 accounting of electricity fed into and withdrawn from the grid — allowing self-consumption without physical storage.
Net metering is a billing model in which self-generated electricity that is not consumed immediately is fed into the grid and can later be withdrawn free of charge. It works like an electricity account that balances feed-in and consumption — usually over a yearly period.
A bidirectional meter records both the amount of electricity fed into the grid and the amount withdrawn.
For example, excess solar electricity produced during the day can be fed into the grid and later withdrawn in the evening or during winter — at no additional cost through 1:1 accounting.
Net metering therefore partly replaces the need for physical storage and enables self-consumption via the public grid.
This model is not permitted in Germany, but is widely used in other countries such as the United States, Italy, and the Netherlands.
• Residential and commercial PV systems without battery storage
• Countries with favorable self-consumption regulations
• Users who generate a high share of their own electricity but consume it at different times
• Alternative or complement to stationary storage systems
• Billing period: usually monthly or annually
• 1:1 accounting: ratio between electricity fed into and withdrawn from the grid
• Balance carryover: surplus electricity may be transferred to the following year
• Compensation rates: payout possible when feed-in exceeds consumption — often below market prices
Net metering is a user-friendly model to promote self-consumption. It allows the public grid to function as a virtual storage system without the need to invest in physical battery storage.
Although it is not permitted in Germany (as of 2025), the model illustrates the potential of intelligent grid usage for the energy transition.
