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How does net metering work with solar panels?

24/03/2015 | Last updated on 01 april 2025

On your energy bill, you’ll see how much electricity you’ve received from your energy supplier, measured in kWh. From this amount, the electricity you have fed back into the grid is deducted. This deduction process is called net metering. Net metering is only possible if you have a suitable electricity meter.

Most of the electricity generated by your solar panels is not used immediately, especially when you're not home during the day. This unused electricity is not stored but fed into the public electricity grid. Your electricity provider is required to offset the electricity you supply to the grid against the electricity you consume. When your consumption exceeds your solar production, the returned electricity is deducted from your total usage.

The smart meter

To benefit from net metering, your electricity meter must be able to record both the electricity you take from the grid and the electricity you return to it. Your grid operator is responsible for ensuring that you have a suitable meter. If your current meter is not compatible, you can request a new meter from your grid operator, which will replace your old one with a smart meter.

The spinning disk meter

If you have a traditional spinning disk meter, net metering happens automatically, and a new meter is not required. The spinning disk simply rotates backward when electricity is fed into the grid. However, it's advisable to check whether the numbers on the meter also count backward, as some models are designed to prevent this.

An example

  • Your annual electricity consumption: 3,500 kWh (the average usage of a Dutch household).

  • Your solar panels generate 2,500 kWh per year.

  • You use 1,500 kWh of this solar energy directly, so you only need to take 2,000 kWh from the grid.

  • The remaining 1,000 kWh is fed back into the grid.

  • Your total grid consumption: 2,000 kWh. Your total return: 1,000 kWh.

  • Thanks to net metering, you only pay for the difference: 2,000 kWh - 1,000 kWh = 1,000 kWh.

What is the future of net metering?

It has been decided that the net metering policy will change in the near future. Starting in 2023, the system will gradually be phased out and eventually eliminated. As a result, it will become increasingly important for solar panel owners to maximize their self-consumption of the energy they generate.