A net metering agreement is a contract between a utility company and a solar system owner that allows the owner to sell excess solar energy generated by their system back to the grid for credits on their electricity bill. It's an important policy that encourages solar adoption by providing a financial incentive for solar energy production. With net metering, your electric meter runs backward when your solar panels generate more electricity than you consume. The credits you accumulate from this excess energy can offset your electricity bill during periods when your solar panels are producing less energy, such as at night or during cloudy days.