Net metering is an arrangement allowing owners of solar panels or other small-scale generators to send excess electricity to the grid and receive credits on their utility bills. When solar panels generate more power than the home uses, the surplus flows back through the meter, spinning it backward or accumulating credits. During periods when generation is insufficient, owners draw from the grid, with credits offsetting consumption. Provincial utilities set net metering policies and credit rates. Net metering encourages renewable energy adoption by improving economics of residential solar installations. Municipal relevance includes supporting renewable energy programs, installing generation on municipal facilities, and incorporating net metering into sustainability plans.