Many governments encourage their residents to produce domestic solar energy to reduce reliance on fossil fuels.   

However, relying solely on solar power may only partially sustain a home. Since solar only produces energy when the sun is shining, more production might be required. The initial cost of solar batteries can also be high.  

Ideally, a solar panel system would be connected to the grid. It allows the meter to contribute and draw power from it. Different metering techniques are used to accommodate various tariff and incentive programs.   

One method is known as net metering. It involves using a meter that can count in both directions. Individuals only pay for the net energy they consume. If consumers generate more power than they use, they receive credit for the excess at predetermined rates and conditions.  

Another option is dual metering, where customers have two one-way meters. They can feed all the energy they generate back into the grid.  

This type of metering is appropriate when appliances receive electricity from the household producer at a different rate than from the grid.   

The rate at which the utility purchases excess energy is called the feed-in tariff (FiT). Australia’s FiT program has evolved over the years, and the current rates are now lower than before, encouraging users to produce only the amount of energy needed to meet their needs.  

Due to net metering, traditional homes and businesses can utilise solar energy while remaining connected to the grid. Net metering incentivises consumers who use solar panels and connect their system to the power grid.  

Net metering is utilised in various countries worldwide. And people using solar panels can expect to be compensated at a rate competitive with traditional grid electricity.   

In Australia, excess energy generated by solar panels is balanced at the market electricity price. Consequently, energy bills are calculated based on the difference between total energy use and the amount of energy generated by solar panels.