Similar to net metering, net billing lets residents with solar panels receive a credit for excess electricity they generate and send back to the grid. This credit is applied to their next electric bill, which offsets future energy costs. Your utility company determines the specific credit rate but is often based on a lower, avoided-cost rate.
At the end of your annual billing cycle, any unused credits from net billing are granted to the utility company without compensation to the homeowner. These unused credits go toward low-income assistance programs. Check with your utility for the latest information and rates.