Net metering is a policy that allows customers of an electric utility to receive bill credits for generating their own electricity from renewable energy sources such as solar or wind.
With net metering, customers are able to offset their energy usage with the energy they generate, resulting in significant cost savings. One variation of net metering is called “true-up billing.” True-up billing is a billing method used by electric utilities to calculate net metering credits for customers. In this method, the customer’s energy usage and renewable energy generation are tracked on a monthly basis. At the end of the month, the utility will calculate the difference between the customer’s energy usage and the energy they generated. If the customer generated more energy than they used, they will receive a credit on their bill. If they used more energy than they generated, they will need to pay the difference.
True-up billing is a great way to ensure customers are accurately compensated for their renewable energy generation. With this method, customers are able to accurately track their energy usage and generation and get an accurate picture of how much they are saving with net metering. Additionally, true-up billing provides an incentive for customers to generate more energy, as they will be able to receive more credits on their bill. Overall, true-up billing is a great way for electric utilities to encourage customers to use renewable energy sources. By providing accurate and timely bill credits, customers are able to save money and reduce their carbon footprint.