Editing Net metering (section)

== Comparison ==
[[File:Feed-in Tariff meter connections.png|thumb|upright=1.2|Net metering, unlike a feed-in tariff, requires only one meter, but it must be bi-directional.]]

There is considerable confusion{{citation needed|date=April 2019}} between the terms "net metering" and "[[feed-in tariff]]" (FIT). In general there are three types of compensation for local, distributed generation:
# Net metering: always at retail, and which is not technically compensation, although it may become compensation if there is excess generation and payments are allowed by the utility.
# Feed-in tariff: generally above retail, and reduces to retail as the percentage of adopters increases.
# [[Power purchase agreement]]: Compensation generally below retail, also known as a "Standard Offer Program", can be above retail, particularly in the case of solar, which tends to be generated close to peak demand.

Net metering only requires one meter. A feed-in tariff requires two.