Editing Net metering (section)

== Excess generation ==
Excess generation is a separate issue from net metering, but it is normally dealt with in the same rules, because it can arise. If local generation offsets a portion of the demand, net metering is not used. If local generation exceeds demand some of the time, for example during the day, net metering is used. If local generation exceeds demand for the billing cycle, best practices calls for a perpetual roll over of the kilowatt-hour credits, although some regions have considered having any kWh credits expire after 36 months. The normal definition of excess generation is annually, although the term is equally applicable monthly. The treatment of annual excess generation (and monthly) ranges from lost, to compensation at avoided cost, to compensation at retail rate.<ref name=:0/>> Left over kWh credits upon termination of service would ideally be paid at retail rate, from the consumer standpoint, and lost, from the utility standpoint, with avoided cost a minimum compromise. Some regions allow optional payment for excess annual generation,<ref>Colorado, Delaware, Minnesota, New Mexico, and Virginia allow optional annual payment for excess generation.</ref> which allows perpetual roll over or payment, at the customers choice. Both wind and solar are inherently seasonal, and it is highly likely to use up a surplus later, unless more solar panels or a larger wind turbine have been installed than needed.