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Microgeneration and Net Metering: Understanding the Connection


As the demand for renewable energy sources continues to grow, microgeneration and net metering have emerged as
valuable options for individuals and communities to generate their own electricity and contribute to a sustainable
future. In this article, we will explore the connection between microgeneration and net metering, and how these
concepts can benefit both the environment and your wallet.

What is Microgeneration?

Microgeneration refers to the small-scale production of electricity, typically through renewable energy sources such
as solar panels, wind turbines, or hydropower. Unlike traditional power plants that rely on fossil fuels,
microgeneration empowers individuals and businesses to generate their own clean energy right at their premises.

Microgeneration systems are usually designed to meet the energy needs of the property, reducing reliance on the
grid and lowering overall energy costs. Depending on the location and available resources, different types of
microgeneration technologies can be used.

Solar Panels

Solar panels are the most common form of microgeneration. These panels use photovoltaic cells to convert sunlight
into electricity. The generated electricity can be utilized directly or stored in batteries for later use.

Wind Turbines

Wind turbines harness the power of the wind to generate electricity. They consist of large blades that rotate when
the wind blows, driving a generator to produce electricity. Wind turbines can be installed on properties with
sufficient wind resources.


Hydropower utilizes flowing or falling water to generate electricity. It often involves the construction of small
dams or channels to direct the water flow through turbines. Properties near rivers or streams can benefit from
hydropower microgeneration systems.

What is Net Metering?

Net metering is a billing arrangement that allows microgenerators to connect their systems to the main power grid.
Under net metering, any excess electricity generated by the microgeneration system is fed back into the grid and
credited to the owner’s account. This surplus energy can be used to offset future energy consumption.

Net metering enables microgenerators to take advantage of the grid as a virtual energy storage system. During times
of low energy production or high demand, microgenerators can draw electricity from the grid. Conversely, when their
microgeneration systems produce more electricity than needed, the excess energy can be supplied to the grid for
others to utilize.

The Connection between Microgeneration and Net Metering

Microgeneration and net metering go hand in hand to create a sustainable and efficient energy ecosystem. By
generating electricity on-site, microgenerators reduce their reliance on the grid and traditional energy sources,
reducing carbon emissions and overall energy costs.

Net metering allows microgenerators to maximize the benefits of their energy production. Rather than wasting any
excess electricity, it is fed back into the grid for others to use, promoting a more balanced and sustainable energy
supply. This two-way relationship between microgeneration and net metering encourages the growth of renewable energy
sources and a decentralized energy infrastructure.

Benefits of Microgeneration and Net Metering

1. Cost Savings: Microgeneration systems reduce energy bills by generating electricity on-site and
utilizing the excess for credit through net metering. Over time, these savings can be significant, making
microgeneration a financially wise choice.

2. Environmental Impact: By relying on renewable energy sources, microgeneration reduces carbon
emissions and the consumption of fossil fuels, contributing to a cleaner and greener environment.

3. Energy Independence: Microgeneration allows individuals and communities to become more
self-sufficient in meeting their electricity needs. It reduces dependence on centralized power systems, making the
energy supply more resilient and reliable.

4. Potential Revenue Generation: In some regions, microgenerators may receive payments for the
excess electricity they supply to the grid, creating an additional source of income.


Microgeneration and net metering are powerful tools for individuals and communities to actively participate in the
transition towards clean and sustainable energy. By generating electricity on-site and utilizing net metering, we
can reduce our environmental impact, drive energy savings, and promote a decentralized energy infrastructure. So
why not consider exploring microgeneration options and making a positive difference today?