Net metering is the arrangement you can make with your power company. After installing a special net metering meter, you can sell your solar power back to the main grid.
The way it works is this: when you produce more solar power than you are using, your meter runs backwards. This is when your power company buys the power back from you. The power company then typically sells this power onto another customer (usually your neighbour) and you pay less for your power bill.
There are different types of net metering arrangements. The better ones allow you to either get credited if you make more power over a year than you use. Other arrangements will give you a 'floating credit' for one or more years. That net credit is generally not carried forward after a specified period. In other words, you don't get credited for a net annual excess of power.
Which states have legislated for net metering?
The following states have compulsory net metering:
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Illnois
Indiana
Iowa
Kentucky
Louisiana
Maine
Maryland
Masachusetts
Michigan
Minnesota
Missouri
Montana
Nevada
New Hampshire
New Jersey
New Mexico
New York
North Carolina
North Dakota
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode Island
Texas
Utah
Vermont
Virginia
Washington
West Virginia
Wisconsin
Wyoming
District of Columbia
Guam
Puerto Rico
Virgin Islands
If your state isn't on this list, check the DSIREusa website. There are other rebates from local counties and power companies that might be available.