Massachusetts Bylaws of VIA Net.Works, Inc.
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FAQ
Net metering typically involves receiving credit from utility companies rather than actual money, so this means there is no taxable income.
At the end of each billing period, the utility totals up the energy that was sent to the grid and energy used from the grid. If the homeowner used more electricity than they sent, the utility bills them for the difference.
The key point in calculating the bill are: The Off Peak-Hours units(Export) are subtracted directly from Off Peak Hours unit(Import) . For example in this current bill 691 units exported are subtracted from 951 units imported leaving 260 units in Net(Remaining +/-) that are multiplied by 18.01.
In most cases, if your solar system generates more energy than your home needs at any given time, the excess energy will flow back to your utility.
Net metering policies ensure you receive compensation for unused solar generation. For example, assume your home solar system produces 1,000 kilowatt-hours (kWh) of energy per month. If you only use 700 kWh, the remaining 300 kWh will go to the grid.
With net metering, your utility company is essentially allowing you to use the grid as a "virtual battery" to "store" excess power for later use. Think of it like a battery that you don't see, that comes to your aid when you need more power.
Out of these 245 units, suppose you have used 135 units for your consumption and the balance you are sending back to the grid. Hence for the balance 110 units you will get a credit based on the monthly electricity rate in your utility bill. Your saving will be calculated as: (135*7.50) - (110*7.50) = Rs.
Net metering allows customers to offset their energy use and transfer energy back to their electric companies in exchange for a credit.