Net metering is a billing arrangement that credits solar energy system owners for surplus electricity fed back into the grid. Solar panels generate electricity from sunlight, which can power homes and businesses. Excess electricity during sunny periods is returned to the grid and credited to the owner's account. This credit, often measured in kilowatt-hours (kWh), is applied to future electricity bills. When solar panels generate less electricity, such as at night, grid power is used as usual. At the end of billing cycles, the utility company calculates the net difference between grid consumption and solar generation, issuing credits for excess generation or billing for deficits. Some programs allow carrying forward credits to subsequent billing periods, helping offset higher consumption. Net metering optimizes solar investments, using the grid as a virtual battery to store surplus energy. It's important to note that policies vary by location.