Net metering is a policy that allows homeowners to receive the full retail value for the electricity that their solar energy system produces. The term net metering refers to the method of accounting for the photovoltaic (PV) system's electricity production. Net metering allows homeowners with PV systems to use any excess electricity they produce to offset their electric bill. As the homeowner's PV system produces electricity, the kilowatts are first used for any electric appliances in the home. If the PV system produces more electricity than the homeowner needs, the extra kilowatts are fed into the utility grid.