Editing Net metering (section)

== Market rate net metering ==
{{Further|Vehicle-to-grid}}
In '''market rate net metering''' systems the user's energy use is priced dynamically according to some function of wholesale electric prices. The users' meters are programmed remotely to calculate the value and are read remotely. Net metering applies such variable pricing to excess power produced by a qualifying system.

Market rate metering systems were implemented in California starting in 2006, and under the terms of California's net metering rules will be applicable to qualifying photovoltaic and wind systems. Under California law the payback for surplus electricity sent to the grid must be equal to the (variable, in this case) price charged at that time.

Net metering enables small systems to result in zero annual net cost to the consumer provided that the consumer is able to shift demand loads to a lower price time, such as by chilling water at a low cost time for later use in air conditioning, or by charging a [[battery electric vehicle]] during [[Off-peak electricity|off-peak]] times, while the electricity generated at peak demand time can be sent to the grid rather than used locally (see [[Vehicle-to-grid]]). No credit is given for annual surplus production.